Real, rather than nominal, figures are important to use when making comparisons of incomes across time periods because
A) the real figures are adjusted for changes in the general level of prices.
B) the real figures are adjusted for changes in the level of interest rates.
C) the real figures are adjusted for changes in the average hours worked per week.
D) the real figures are adjusted for changes in taxes.
A) the real figures are adjusted for changes in the general level of prices.
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The probability of an event is the:
A) time taken for the event to occur. B) frequency at which the event occurs. C) net benefit to society from the event. D) total number of economic agents affected by the event.
Normative economics deals with ____ and positive economics deals with ____
a. what should be; what is b. fiction; fact c. microeconomics; macroeconomics d. negative aspects; positive aspects e. changing circumstances; same circumstances
Domingo is a contestant on a trivia quiz show. For every state capital he can correctly identify, he will win $1,000 . However, before identifying any capitals, he must decide how many he thinks he can correctly identify. If he cannot identify as many as he has wagered, Domingo will not win any money. Suppose Domingo says that he can correctly identify 42 state capitals for a potential payoff of
$42,000 . According to studies of human decision-making, what is most likely to happen? a. Domingo will be able to identify 42 state capitals and he will win $42,000. b. Domingo will be able to identify fewer than 42 state capitals and will not win any money. c. Domingo will not be able to identify any state capitals and will not win any money. d. Domingo will choose to save all of the money he wins on the quiz show for his retirement.
When the economy turns down and the incomes of many people decrease, vacationers are more likely to take car trips than to fly. Which of the following provides one possible explanation for this phenomenon?
A. Air travel and travel by car are complementary goods. B. Air travel and travel by car are both normal goods. C. Air travel is a normal good and travel by car is an inferior good. D. Air travel is an inferior good and travel by car is a normal good.