Suppose a worker signs a contract containing an 8 percent nominal wage increase with inflation expected to be 3 percent. Inflation turns out to be 6 percent, but the contract also contains 60 percent COLA protection
The worker's real wage under the contract A) falls by 1.2 percent.
B) falls by 2.4 percent.
C) rises by 3.8 percent.
D) rises by 3.0 percent.
E) rises by 1.8 percent.
C
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Why is it that today it is more difficult to categorize countries into the three neat groups like the one that were used in the 1960s
What will be an ideal response?
The Walt Disney Company is in a position to use a two-part tariff policy in setting prices for admission and rides at Disney World. If this strategy resulted in maximum profit, Disney would convert all consumer surplus into profit
Which of the following explains why Disney does not maximize its profits from admission and rides? A) Disney purposely charges less than the profit-maximizing price for admission to Disney World because it does not want to risk alienating its customers. B) To maximize its profits, Disney would have to know the demand curves of each of its customers. Since this is not possible, Disney is not able to convert all consumer surplus into profit. C) Disney purposely charges less than the profit-maximizing price for admission to Disney World in order to earn more profit from sales of food, lodging, and other related services. D) Disney does not charge the profit-maximizing price for admission because it wants to keep admission affordable for children who will be more likely to visit Disney World when they become parents.