When expected inflation increases, for any given nominal interest rate the:
A. real interest rate increases.
B. cost of borrowing decreases and the desire to borrow increases.
C. cost of borrowing increases and the desire to borrow decreases.
D. bond supply curve shifts to the left.
Answer: B
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If Big Dogs, a hot dog producer, purchases delivery trucks to deliver their hot dogs to local grocery stores, this is an example of ________.
A) outsourcing B) forward integration C) backward integration D) divestiture
When there are positive externalities in the consumption of a good:
a. marginal social benefit exceeds marginal private benefit. b. the marginal social benefit curve lies below the private market demand curve. c. the socially optimal level of output exceeds the private market equilibrium quantity. d. public policy aims to lower the level of output below the private optimum.
Bob's Barber Shop cut 3,000 heads of hair in 2016 and 3,100 in 2017. The price of a haircut was $7 in 2016 and $8 in 2017. If 2016 is the base year, what was Bob's contribution to real GDP in 2017?
A. $21,000 B. $24,800 C. $21,700 D. $24,000
The U.S. Justice Department prosecuted Microsoft under the terms of
A) the Sherman Act. B) the Kefauver amendment. C) the 1933 amendment to the Federal Trade Commission Act. D) none of the above.