When the price of a product rises faster than the inflation rate,
A. Nominal incomes of the consumers of that product rise.
B. Real incomes of the consumers of that product fall.
C. Nominal incomes of the consumers of that product fall.
D. Users of that product have higher real incomes than people who do not consume the product.
Answer: B
Economics
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What will be an ideal response?
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When measuring GDP by the income approach, wage income includes i. health-care insurance paid for by the firm for its employees. ii. Social Security contributions made by the firm. iii. wages paid during a worker's vacation time
A) i, ii and iii B) i and ii only C) i only D) ii only E) ii and iii only
Economics