If individuals have money illusion then they
A) think that money is worthless.
B) ignore the effects on their income or wealth of some price changes in the economy.
C) they base their production and consumption decisions on relative rather than absolute prices.
D) Both B and C.
B
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Economic discrimination takes place when an employer
A) pays workers the lowest wage possible. B) pays workers compensating wage differentials. C) pays lower wages to workers who are not as productive as other workers. D) pays workers different wages on the basis of some arbitrary characteristics of workers that are irrelevant to the job performed.
Refer to the information provided in Figure 3.12 below to answer the question(s) that follow.
Figure 3.12Refer to Figure 3.12. The supply curve for hula hoops shifts from S1 to S0. This could be caused by
A. a decrease in the number of firms selling hula hoops. B. a decrease in the cost of producing hula hoops. C. a decrease in the demand for hula hoops. D. a decrease in the price of hula hoops.