If the nominal interest rate is 8 percent and the inflation rate is 3 percent, then the real interest rate equals:
A. 8 percent.
B. 11 percent.
C. 3 percent.
D. 5 percent.
Answer: D
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Better public education serves to ________ unemployment
A) raise mismatch B) lower mismatch C) raise turnover D) lower turnover
Which of the following statements regarding labor supply is false?
a. Jerry's labor supply curve can bend backward if the income effect of a higher wage rate outweighs the substitution effect. b. Bob's labor supply curve will not bend backward if the wage rate is never so high that the income effect outweighs the substitution effect. c. If there is a wage rate above which the income effect is at least as great as the substitution effect, the labor supply curve will be vertical or bend backward. d. The labor supply curve will slope upward if the income effect dominates the substitution effect. e. Hayden's offer to work more hours as the result of a wage increase suggests that the substitution effect dominates the income effect.
Recall the Application about cultural factors in England and their relevance to the Industrial Revolution to answer the following question(s). According to the Application, the cultural habits of the rich filtered down through English society. These habits included all of the following virtues EXCEPT:
A. thrift. B. prudence. C. hard work. D. impulsive behavior.
Suppose a new contracting environment that requires greater specialized investments is considered. This new contract will result in:
A. a decrease in the marginal benefit and a shorter optimal contract. B. a decrease in the marginal benefit and a longer optimal contract. C. an increase in the marginal benefit and a longer optimal contract. D. an increase in the marginal benefit and a shorter optimal contract.