Suppose the nominal interest rate is 15% and the rate of inflation is 3%. The real interest rate is therefore

A) 3%.
B) 5%.
C) 12%.
D) 18%.


C

Economics

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Profit is the factor price for ________

A) capital B) land C) entrepreneurship D) labor

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The greatest increase in productivity per capital results from

a. a larger population. b. more land. c. specialization and exchange. d. atmospheric conditions.

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If a product exhibits decreasing returns to scale, then the average cost of making the product will ______ as its production increases?

a. Increase. b. Decrease. c. Remain the same. d. There is insufficient information provided to ANSWER the question.

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Which of the following terms describes a restrictive practice that involves forcing the purchase of a second good when purchasing another good?

a. Exclusive dealing b. Predatory pricing c. Tying d. Bundling

Economics