In a world of imperfect knowledge and uncertainty, the return to investors who undertake projects that increase the value of resources is called
a. economic profit.
b. accounting profit.
c. the inflationary premium.
d. the real interest rate.
A
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The World Bank sorts countries into the following three major groups:
a. high-income economies, middle-income economies, low-spending economies b. high-spending economies, middle-spending economies, low-spending economies c. super-high-income economies, middle-income economies, low-income economies d. high-income economies, middle-income economies, zero-income economies e. high-income economies, middle-income economies, low-income economies
All else equal, a decrease in the demand for oranges will lead to a(n) ________ in equilibrium price and a(n) ________ in equilibrium quantity.
A. decrease; increase B. decrease; decrease C. increase; increase D. increase; decrease
“Underground” economic activity can best be described as
A. the construction of subway transportation. B. the building of foundation structures for skyscrapers. C. the mining and oil industries. D. barter or cash activity that is not reported as income.
The quantity of imports will decrease when there is
A) an increase in the real exchange rate. B) a reduction in domestic output. C) a reduction in foreign output. D) all of the above E) none of the above