Suppose that in some year nominal interest rates are less than the rate of inflation. This means that:
A. money demand exceeds money supply.
B. real interest rates are negative.
C. real interest rates are positive and unusually high.
D. real interest rates exceed nominal interest rates.
Answer: B
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In the short run, the point at which average cost is minimized, the line from the origin to the point on the
A) total cost curve is tangent to the curve. B) total cost curve has the largest slope. C) total variable cost curve has the largest slope. D) total variable cost curve has the smallest slope.
Crunchy Chips is a potato chip manufacturer. To produce the chips, Crunchy Chips needs to first peel and slice the potatoes and then fry them within two minutes of slicing to prevent browning. If Crunchy Chips is unable to fry the potatoes within two minutes, it must freeze the chips and later defrost them to fry them. Which of the following is true for Crunchy Chips?
A) Crunchy Chips faces a hold-up problem. B) Crunchy Chips has production technological interdependency. C) Vertically integrating the slicing and frying process will increase production costs. D) Crunchy Chips has no production technological interdependency.
A model (or theory):
a. is a general statement about the causal relationship between variables based on facts. b. helps explain and predict the relationship between variables. c. when expressed as a downward (negatively) sloping graph implies an inverse relationship between the variables. d. all of these.
Balance-of-payments accounts are maintained according to the principles of single-entry bookkeeping
Indicate whether the statement is true or false