The adjustment of nominal incomes to changes in the price level (CPI) is fixed because of the:
a. volatility of investment spending
b. existence of long-term contracts.
c. complete information possessed by workers.
d. all of the above.
b
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If your income rises by 25 percent and, as a result, you buy fewer packages of Ramen Noodles, then Ramen Noodles are a(n)
A) substitute. B) normal good. C) complement. D) inferior good.
Some economists who consider monopoly to be both inevitable and bad are inclined toward a policy of ___________ if regulation of the monopoly seems ineffectual
a. contestable market b. price controls c. countervailing power d. creative destruction e. nationalization
A price elasticity of demand of 5 means that for every 1 percent change in price, the quantity demanded will change in the opposite direction by 5 percent
a. True b. False Indicate whether the statement is true or false
"Walmart is a low wage firm and this indicates that it exploits its workers" which of the following should cause one to question the validity of this statement?
What will be an ideal response?