If the real interest rate rises, people
A) save more.
B) save less.
C) earn a higher real wage rate.
D) decrease their expected future income.
A
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According to the law of diminishing returns, when some factors of production are fixed, in order to increase production by a given amount, a firm will eventually need to add successively:
A. smaller and smaller quantities of the variable factors of production. B. larger and larger quantities of the fixed factor of production. C. larger and larger quantities of the variable factors of production. D. constant quantities of the variable factors of production.
Puerta Vallarta International Airport is near the coast. At night planes take off and land from the west, over the water. During the day planes approach and leave from the east, over Puerta Vallarta neighborhoods. Night flights into and out of Puerta Vallarta are more dangerous than day flights. Which rights are in conflict in this situation?
a. residents' right to enjoy the ocean and their right to peace and quiet b. residents' right to enjoy the ocean and air passengers' right to enjoy the ocean c. residents' right to peace and quiet and air passengers' right to safety d. residents' right to peace and quiet and safety e. air passengers' right to safety and convenience
Regulatory commissions may focus on establishing a "fair-return" price to be charged by a monopolist. Under this policy, the monopolist would earn:
a. positive economic profits. b. zero economic profits. c. negative economic profits. d. monopoly profits.
Which of the following is a store of value?
a. Passbook savings deposit b. Federal Reserve notes c. Debit card d. Each of the answers is a store of value.