The Value of an Original Painting,held as an Asset,increased in Value

question 124

Multiple Choice

The value of an original painting,held as an asset,increased in value by 100 percent from 1970 to 2012.Suppose during the same period average prices in the economy rose by 150 percent.The owner of the painting,relative to those who do not own paintings,experienced a:

• A) Higher real income as a result of the wealth effect.
• B) Higher real income as a result of the price effect.
• C) Lower real wealth as a result of the wealth effect.
• D) Lower real income as a result of the income effect.

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Definitions:

Joining A Union

The process by which employees become members of a labor union, often seeking to improve working conditions, pay, or benefits through collective bargaining.

Canadian Employers

Organizations or individuals in Canada that hire and provide work for employees.

Union Organizing Drives

Activities undertaken by unions to encourage and sign up new members, often with the goal of becoming recognized as the official bargaining agent for a group of employees.