Last year the Jones family earned $40,000 . This year their income is $42,000 . In an economy with an inflation rate of 10 percent, which of the following is correct?
a. The Jones' nominal income and real income have both fallen.
b. The Jones' nominal income and real income have both risen.
c. The Jones' nominal income has increased and their real income has fallen.
d. The Jones' nominal income has decreased and their real income has risen.
c
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__________ are never borrower-spenders
A) Governmental bodies B) Business firms C) Households D) All of the above can be borrower-spenders.
Microeconomics differs from macroeconomics in that:
a. microeconomics studies individual decision making while macroeconomics examines aggregate decision making. b. microeconomics studies aggregate decision making while macroeconomics examines individual decision making. c. microeconomics utilizes positive economic analysis while macroeconomics utilizes normative economic analysis. d. microeconomics is concerned with consumer behavior while macroeconomics is concerned with firm behavior.
If a monopolist lowers its price to increase sales from 100 to 200 units, then the
a. price at the 200th unit will be less than the marginal revenue of the 200th unit b. price at the 100th unit will be greater than the marginal revenue of the 200th unit c. profit earned producing 200 units will be greater than the profit earned producing 100 units d. price at the 200th unit will be greater than the marginal revenue of the 200th unit e. profit earned producing 100 units will be greater than the profit earned producing 200 units
Most economists believe that in the long run, changes in the money supply
a. affect nominal but not real variables. This view that money is ultimately neutral is consistent with classical theory. b. affect nominal but not real variables. This view that money is ultimately neutral is inconsistent with classical theory. c. affect real but not nominal variables. This view that money is ultimately neutral is consistent with classical theory. d. affect real but not nominal variables. This view that money is ultimately neutral is inconsistent with classical theory.