If Nominal Income Increases,then

question 98

Multiple Choice

If nominal income increases,then:

• A) real income increases.
• B) real income increases if the price index falls.
• C) real income increases if the percent increase in price index rises by more the percent change in nominal income.
• D) real income increases if you buy only the goods included in the consumer price index (CPI) and the majority of those goods get cheaper.
• E) real income decreases.

Understand the concept of deadweight loss in market transactions.

Understand the basic terminology and structure related to the auditory system.

Identify the roles and functions of the auditory nerve and parts of the external, middle, and inner ear.

Recognize the medical and surgical interventions associated with hearing disorders.

---

Definitions:

Variable Expenses

Costs that vary in total in direct proportion to changes in business activity levels or volumes, such as sales commissions or raw material costs.

Contribution Margin

The difference between the sales revenue of a product and its variable costs, providing insight into how much revenue contributes towards fixed costs and profit.

Fixed Expenses

Costs that do not fluctuate with the volume of production or sales, such as rent, salaries, and insurance.

Opportunity Cost

The loss of potential gain from other alternatives when a particular alternative is chosen.