Looking at real and nominal interest rates in the United States since 1971, we see that the
A) nominal interest rate has at times been negative.
B) real interest rate has been greater than 10 percent for most years.
C) real interest rate has at times been negative.
D) real interest rate was above 5 percent during the low inflation of the 1970s.
E) real interest is generally greater than the nominal interest rate.
C
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Which of the following is true of net taxes? a. The level of net taxes varies directly with the level of transfer payments. b. The level of net taxes varies inversely with the level of transfer payments. c. Net taxes must always be less than zero
d. Net taxes increase when income tax rates are reduced. e. Net taxes increase when income decreases.
Wendy retails motor homes, which she buys for a sum that does not vary with the number she purchases from the manufacturer. She can sell 11 per week at $40,000. If she limits sales to 10, she can charge $41,000 each. She will sell 11 per week if the cost of each vehicle is no more than
A. $20,000. B. $30,000. C. $40,000. D. $41,000.
If government officials break a natural monopoly up into several smaller firms, then
a. competition will force firms to attain economic profits rather than accounting profits. b. competition will force firms to produce surplus output, which drives up price. c. the average costs of production will increase. d. the average costs of production will decrease.
The term human capital refers to education, training and experience
Indicate whether the statement is true or false