The real interest rate is defined as the:
a. fixed rate on consumer loans.
b. nominal interest rate minus the inflation rate.
c. actual interest rate.
d. expected interest rate minus the inflation rate.
b
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People who failed to look for a job are classified as
A. unemployed. B. underemployed. C. out of the labor force. D. part time employed.
Suppose that there are only two types of used cars, peaches and lemons. Peaches are worth $10,000 and lemons are worth $4,000. Without effective signals such as warranties, the owners of peaches cannot sell their cars for $10,000 because the
A) owners of peaches cannot convince buyers that their cars are worth $10,000. B) buyers cannot convince owners of peaches to sell their cars for $10,000. C) owners of lemons cannot convince buyers that their cars are worth more than $4,000. D) buyers cannot convince owners of lemons to sell their cars for $4,000.
When there is a tendency for a particular product to fall out favor with additional consumers because other consumers have chosen not to purchase the product
A) negative market feedback occurs. B) positive market feedback occurs. C) the tit-for-tat strategy will begin. D) the network effect will increase.
A firm that generates pollution is illustrated in Figure 9.7. If the government would like to induce this firm to abate, or reduce, its pollution by A1 tons, it will impose a pollution tax equal to:
A. P1. B. P1 minus P3. C. P2. D. P2 minus P3.