What is Classical Dichotomy in Economics?
The following questions test your understanding of the concept of Classical Dichotomy:
Ginny spends all her money on magazines and donuts. In 2015, she earned $14.00 per hour, the price of a magazine was $7.00, and the price of a donut was $2.00.
1. Which of the following gives the nominal value of the variable? Choose all that apply.
A. The price of a donut is 0.29 price of a magazine in 2015.
B.Ginny's wage was 2 magazines per hour in 2015
C.The price of a donut is $2 in 2015.
2. Which of the following gives the real value of the variable. Choose all that apply.
A.The price of a magazine is $7 in 2015
B.Ginny's wage was $14 per hour in 2015
C.The price of the magazine is 3.5 donuts in 2015.
What is Classical Dichotomy in Economics?
The following questions test your understanding of the concept of Classical Dichotomy:
Ginny spends all her money on magazines and donuts. In 2015, she earned $14.00 per hour, the price of a magazine was $7.00, and the price of a donut was $2.00.
1. Which of the following gives the nominal value of the variable? Choose all that apply.
A. The price of a donut is 0.29 price of a magazine in 2015.
B.Ginny's wage was 2 magazines per hour in 2015
C.The price of a donut is $2 in 2015.
2. Which of the following gives the real value of the variable. Choose all that apply.
A.The price of a magazine is $7 in 2015
B.Ginny's wage was $14 per hour in 2015
C.The price of the magazine is 3.5 donuts in 2015.
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