If workers received a 5 percent wage increase and the rate of inflation was 10 percent, then their real wage:

A. decreased.
B. remained constant.
C. increased.
D. equaled the nominal wage.

Answer: A

Economics

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Generally speaking, the Tiebout model is _____

a. the idea that intergovernmental competition reveals consumer preferences for public goods b. the idea that the lack of mobility can be offset by intergovernmental comparison c. the idea that intergovernmental competition is Pareto superior d. the idea that mobility is not necessary to intergovernmental competition

Economics

If a country's production possibilities curve gets more bowed out over time, it is an indication that

A) technological change has taken place. B) society is learning to use its resources more efficiently. C) the quantity of labor and capital have increased. D) resources have become more highly specialized.

Economics