Which of the following best defines the real interest rate (r)?
A) the amount of goods we must give up next year in order to consume more goods today
B) the amount of dollars we must give up next year in order to consume more goods today
C) the amount of dollars we must give up next year in order to have more dollars today
D) the amount of dollars we must give up today in order to have more dollars next year
E) the amount of dollars we must give up today in order to consume more goods today
A
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Unions support minimum wage laws, because
A) union workers are typically paid the minimum wage. B) an increase in the minimum wage paid to low-skilled labor increases the opportunity cost of employing high-skilled union labor and, hence, increases the demand for union labor. C) an increase in the minimum wage paid to low-skilled labor increases the opportunity cost of employing low-skilled labor and, hence, increases the demand for union labor. D) an increase in the minimum wage paid to low-skilled labor causes the supply curve of low-skilled labor to shift leftward and, hence, increases the demand for union labor.
Which of the following statements reflect sound economic reasoning?
A) If domestic production of a good will employ lots of people, the good should be produced domestically. B) Higher tariffs will increase the total volume of international trade. C) Foreign competition will reduce the wealth of Americans. D) If it is more economical to acquire a good through trade than by self-production, it makes sense to trade for it.
Suppose that there is a renewed interest in eating caviar at the same time that the supply of Russian caviar shrinks. What would be the most likely effect of these events on the price and quantity of caviar sold?
A. Price fell and the effect on the quantity of caviar sold is ambiguous. B. Price fell and quantity sold rise. C. Price rose and the effect on the quantity of caviar sold is ambiguous. D. Price rose and quantity sold fell.
The study of development economics is to understand
A. why most of the patents on record have been given to men rather than to women. B. why some products are successful in the market as soon as they are developed, whereas others do not catch on for years. C. why some countries are rich and others are poor. D. the personality factors that lead people to become entrepreneurs.