If both the real interest rate and the nominal interest rate are 3%, then the
A. inflation premium also is 3 percent.
B. inflation premium is zero.
C. real GDP must exceed the nominal GDP.
D. nominal GDP must exceed the real GDP.
Answer: B
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A new cattle feed has been found to increase the amount of milk each cow produces. Which of these is a likely impact in the market for milk, if this cattle feed is used by most of the dairies?
a. A rightward shift of the supply curve for milk b. An increase in the demand for milk c. A decrease in the quantity demanded of milk d. A leftward shift of the supply curve for milk e. An increase in the price of milk
Bob budgets $12 a week for entertainment. He splits his time between going to the movies and going to the gym. Each movie costs $3 and each session at the gym also costs $3. The total utility from each of these activities is shown in the table below. Bob's utility maximizing point is:
fig29.PNG A. 3 movies; 3 gym workout sessions B. 4 movies; 2 gym workout sessions C. 4 movies; 0 gym workout sessions D. 1 movie; 5 gym workout sessions
If the demand for a product decreases, but the supply for the product stays the same, which of the following would happen?
a. There will be a scarcity of the product. b. There will be an equilibrium of the product. c. There will be a shortage of the product. d. There will be a surplus of the product.
What makes a grim trigger strategy "grim" is:
A. if one player overprices, then the other overprices to the point of zero quantity demanded. B. if one player underprices, then the other player notifies the Federal Trade Commission. C. if one player underprices, then the other player is driven out of the market. D. if one player underprices, then the other player drops the price so far that profits for both firms are zero.