Your annual review is given to you at your place of employment, and you get a raise of 3 percent for the next year. On the subway home though, you read an article stating the price of homes in the area you are looking to buy will increase by 6 percent during the coming year. You determine from the article that if you buy in your favorite neighborhood
A. your purchasing power declines.
B. quantity demanded will increase.
C. your real income actually increases.
D. consumer optimum is reached.
Answer: A
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A straight line falls when moving rightward along it. Hence the slope of the line is
A) negative. B) positive. C) zero because it is a straight line. D) undefined. E) perhaps positive, negative, or zero, but without more information it is impossible to determine.
Which of the following is correct?
a. The maturity of a bond refers to the amount to be paid back. b. The principal of the bond refers to the person selling the bond. c. A bond buyer cannot sell a bond before it matures. d. None of the above is correct.
Who of the following would be considered a discouraged worker?
A. Frank would like to work, but has not looked for work because he believes no jobs are available. B. Melissa has a Ph.D. in physics, but is currently employed full time driving a taxi. C. Ray wants to work forty hours per week, but can only find work for twenty hours per week. D. Anna Marie has been looking for a job every day for the last month, but has not been hired.
The monopolist's input demand curve is equal to its
A. marginal cost curve. B. average cost curve. C. variable cost curve. D. marginal revenue product curve.