The term "nominal income" refers to
A. Money income measured in current dollars.
B. Real purchasing power.
C. Money income adjusted for any change in the price level.
D. Real purchasing power deflated for rising prices.
Answer: A
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If there are both external benefits and external costs associated with the production and consumption of a good, and the external benefits are greater than the external costs,
a. Taxing it could bring us closer to the efficient solution b. Subsidizing it could bring us closer to the efficient solution c. Neither a tax or a subsidy could bring us closer to the efficient solution d. None of the above is true.
The difference between the cost of production on a piece of land less the cost of production on marginal land is called
a. usury. b. profit. c. rent. d. interest.