An individual who suffers from money illusion will
A) feel that a doubling of prices and income improves his economic position.
B) concentrate on relative prices.
C) never be fooled by the impact of price changes on the purchasing power of income.
D) try to use counterfeit money.
A
You might also like to view...
Compared to a single-price monopoly, when a monopoly can perfectly price discriminate, the deadweight loss
A) increases. B) decreases. C) remains the same. D) becomes infinite. E) probably changes, but more information is needed to determine if it increases, decreases, or remains constant.
Which of the following would be an example of how pure luck contributes to income inequality?
A. Approval to receive unemployment benefits B. Receipt of a government grant for housing C. Selection as winner of a state lottery D. Admission to a state university