When economists say wages are "sticky," they mean that they:
A. lead market trends, and other variables will stick to the wage rate and follow it closely.
B. get stuck behind current market trends, and follow a typical two-week lag with changes in the economy.
C. stick to current market trends, and adjust to equilibrium when changes in the economy occur.
D. are slow to adjust to changes in the economy, and can cause unemployment.
Answer: D
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What is the "inflation tax"?
A) the difference between nominal and real interest rates received on financial assets, due to inflation B) the fact that our tax system is based on nominal incomes and not real incomes, so that the government collects more taxes due to inflation alone C) the government obtaining goods in exchange for newly created high-powered money that does not add to the real value of private assets due to the resulting inflation D) the fact that greater government spending leaves fewer goods available to the private sector, thus lowering their prices.
The _________ measures overall progress in 174 countries, based on life expectancy, adult literacy rate, education level and GDP per capita
a. United Nations Well-Being Ratio b. Human Development Index (HDI) c. De Facto Index d. International Impact Survey
Each of the following can explain why an order could not been carried out as intended, EXCEPT:
a. incompetence. b. opportunism. c. impossibility. d. obedience.
Each ounce of salt is chemically identical to every other ounce. Why then, does the Morton brand salt sell at your supermarket for a higher price than the store brand?