If a worker’s nominal wage moves from $180 per week in a base period to $300 per week subsequently, but the real wage rises to only $240, we can conclude that
a. prices have increased faster than nominal wages.
b. the price level has increased by 25 percent.
c. the worker’s purchasing power has increased 67 percent.
d. the worker’s purchasing power has increased 150 percent.
b. the price level has increased by 25 percent.
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A marginal external cost of a product is equal to
A) what the producer has to pay to hire resources to produce another unit. B) the cost someone other than the producer incurs when another unit is produced. C) the cost the producer incurs to produce another unit. D) what the consumer must pay when he or she buys the good or service. E) None of these answers describes a marginal external cost.
From the equation of exchange, if both nominal income and the quantity of money (M) have doubled, while the price level (P) has decreased by 50 percent and velocity (V) remains constant, then real output (Y) ________
A) also doubles B) triples C) quadruples D) decreases by 50 percent E) none of the above
If voters are rational, they are more likely to vote
A. if the issues are complex. B. when they are employed. C. in small local elections. D. in large national elections.
The price of bonds and the interest rate are
A. inversely related. B. positively related. C. related, but we are not sure how. D. unrelated.