Top Posters
Since Sunday
5
a
5
k
5
c
5
B
5
l
5
C
4
s
4
a
4
t
4
i
4
r
4
Home Q & A Board Other Fields Homework Help Business Economics
New Topic  
Mairoon Mairoon
wrote...
Go to Answer
Posts: 850
Rep: 0 0
6 years ago
Richard receives government transfer payments and currently consumes 5 guns and 6 goose livers. Assume the price of guns decreases by 10% and the price of goose liver increases by 20%. The government raises Richard's transfer payments so he can still afford 5 guns and 6 goose livers. Does this constitute a true cost-of-living adjustment (COLA)?
A) No. Richard is overcompensated.
B) No. Richard is undercompensated.
C) Yes. The payment just achieves the right level of compensation.
D) Not enough information.
Textbook 
Microeconomics

Microeconomics


Edition: 6th
Author:
Read 44 times
2 Replies
Replies
Answer verified by a subject expert
LBCeaLBCea
wrote...
#1
Top Poster
Posts: 1248
Rep: 10 0
6 years ago
Sign in or Sign up in seconds to unlock everything for free
More solutions for this book are available here
1

Related Topics

Mairoon Author
wrote...
#2
5 years ago
Thanks. This is just start. Wink Face
New Topic      
Quick Reply
Explore
Post your homework questions and get free online help from our incredible volunteers
  1416 People Browsing
Start New Topic Take the Tour CoursesNew Study Tools Topics Trending Browse by Textbook
Live Chat
Related Images
  
 32
  
 133
  
 726
Your Opinion
What's your favorite funny biology word?
Votes: 328
Previous poll results: Do you believe in global warming?