If you take out a mortgage with a nominal interest rate of 8% and you expect the inflation rate to be 2%, then you expect to pay a real interest rate of
A) 4%.
B) 6%.
C) 10%.
D) 16%.
B
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Suppose Acme and Mega produce and sell identical products and face zero marginal and average cost. Below is the market demand curve for their product. 
Suppose Acme and Mega decide to collude and work together as a monopolist with each firm producing half the quantity demanded by the market at the monopoly price. If Mega cheats on the agreement by reducing its price to $1 while Acme continues to comply with the collusive agreement, then Mega's economic profit will be ________.
A. $200 B. $150 C. $100 D. $75
Labor productivity will increase if the ________ increases and ________
A) quantity of labor per unit of capital; immigration increases while capital is fixed B) quantity of capital per hour worked; immigration increases while capital is fixed C) quantity of capital per hour worked; technology improves D) quantity of labor per unit of capital; technology improves
As shown in the graph, when a government imposes a quota, the outcome differs from that of a tariff being imposed in that area:
This graph demonstrates the domestic demand and supply for a good, as well as a quota and the world price
for that good.
A. F and H are deadweight loss instead of transferred surplus.
B. E represents tax revenues instead of transferred surplus.
C. FGH is deadweight loss instead of tax revenues.
D. G represents quota rents instead of tax revenues.
Entrepreneurs
A) and managers are found on the same organizational level. B) are usually found in small firms. C) are usually found in larger firms in order to access financial capital. D) are found in firms of all sizes.