If a college professor's income has increased by 3 percent at the same time that prices have risen by 5 percent, the professor's real income has a. decreased by 2 percent. b. increased by 2 percent. c. increased by 7 percent. d. decreased by 7 percent. not changed. e.
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- Generally, as the proportion of middle-income households in a country __________, the __________ a nation's purchasing power tends to be. A. increases; greater B. increases; less C. decreases; greater D. decreases; less E. There is no relationship at allWhich one of the following is NOT a possible relationship between income and spending Select one: a. Income equals the level of spending b. Spending is higher than income c. None is a relationship d. Income is higher than spendingSavings must be invested in order to bridge the gap between: a. a drop in both income and consumption b. a rise in both income and consumption c. to check the ratio of investment in income
- 17. Find the equilibrium level of income (Y). You are given the following information: C= 100 +.8Yal = 100 G= 200| T= 100, Ya = Y–T Show your calculationsWhich of the following isn't one of the eight determinates of the level of consumption? A. Disposable Income B. Keeping up with the Joneses C. The Wealth Effect D. Product QualityWhat is induced spending? Select one: A. The portion of total spending that is dependent of the level of income. B. The portion of total spending that is independent of the level of income. C. The portion of income that is dependent on the level of spending. * D. The level of spending which varies with the level of prices.
- At the equilibrium level of income it must be true that total Select one: a. product equals total output. b.income equals total spending. cincome equals total saving. d. output equals total inventory.11. The long run is defined as: a. the horizon in which the manager can adjust all factors of production. b. the horizon in which there are only fixed factors of production. c. the horizon in which there are both fixed and variable factors of production. d. greater than one year.(1) Recent measurements have shown a significant deterioration in the quality of the Scottish seaside. Which of the following statements are compatible with this observation? A. The real value of GDP has increasedB. The real value of GDP remains the same C. North Sea oil wells have dried upD. The price of swimming costumes has gone down (2) The impact of Covid-19 on happiness is negative because A. it decreased economic activityB. it coincided with BrexitC. it forced social isolationD. it obliged people to develop new Information Technology skills(i) A is correct(ii) A and B are correct(iii) A and C are correct(iv) All of the above are correct
- 14) Calculate the real change in the income in $. A B C D 1 An iron mining company sells three grades of to its customers. 2 Per ton prices (S) of these grades and tons produced are shown below for 2016 and 2017. 3 2016 2017 5 6 7 Grade Notations 1. 8 9 Total IL IIL Price 5 B 10 Quantity go 3000 2000 2000 give min. 1 decimal and do not use sign, e.g.125.3 Price p1 8 10 12 E Quantity 4000 2000 3500 FWhich of the following is NOT accounted in the expenditure approach? a. Food b. Furniture c. Used cars d. Education23. When an individual is considering borrowing to smooth consumption they will borrow just enough that the interest rate is less than their discount rate. A. B. C. D. ABCD they can consume equal amounts now and later. they can easily pay back the loan. the discount rate is equal to the interest rate.