Inflation affects borrowers and lenders differently. After signing a contract with a fixed nominal interest rate, it can be expected that
A. borrowers will hope that prices fall.
B. lenders will hope that prices rise.
C. lenders will hope that the purchasing power of money will fall.
D. borrowers will hope that prices rise.
Answer: D
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Refer to the figure above. Which apartment is the best feasible choice for the individual?
A) Apartment 1 B) Apartment 2 C) Apartment 3 D) Apartment 4
A monopolist price discriminates by
a. charging different buyers different prices for different products b. charging different buyers different prices for the same product c. selling at a price below average total cost d. selling at a price below marginal cost e. selling at a price above marginal revenue
Labor unions are groups of:
A. employees who join together to bargain with their employer(s) over salaries and work conditions. B. employers who join together to create fair employment packages for employees within a certain geographical area. C. employers who petition the government to regulate the safety conditions of certain industries. D. employees who petition the government to oversee the employment conditions of employees who work for major corporations.
If the best surgeon in town is also the best at cleaning swimming pools, then according to the theory of comparative advantage, this person should
A) pursue the activity he enjoys more. B) specialize in cleaning swimming pools because it is more labor-intensive. C) split his time evenly between being a surgeon and cleaning swimming pools. D) specialize in being a surgeon because its opportunity cost is lower.