Interest rates are positive because
A) people prefer future consumption over current consumption.
B) people prefer current consumption over future consumption.
C) usury laws require rates to be very high.
D) banks are not competitive.
Answer: B
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Refer to Table 2-30. This table shows the number of labor hours required to produce a wristwatch and a bushel of rice in Japan and Thailand
a. Which country has an absolute advantage in the production of wristwatches? b. Which country has an absolute advantage in the production of rice? c. What is Japan's opportunity cost of producing one wristwatch? d. What is Thailand's opportunity cost of producing one wristwatch? e. What is Japan's opportunity cost of producing one bushel of rice? f. What is Thailand's opportunity cost of producing one bushel of rice? g. If each country specializes in the production of the product in which it has a comparative advantage, who should produce wristwatches? h. If each country specializes in the production of the product in which it has a comparative advantage, who should produce rice?
In a coordination game, a Nash equilibrium occurs when
a. each player ignores the strategy of the other player b. each player chooses no strategy, but maintains the status quo c. each player chooses the same strategy d. one player can improve the outcome by changing strategy e. None of the answers is correct.
A decrease in the productivity of labor will shift the demand curve for labor to the left, other things being equal
a. True b. False Indicate whether the statement is true or false
The marginal product of labor is calculated assuming other factor inputs
A. decrease. B. increase less than proportionately. C. remain constant. D. increase more than proportionately.