The ________ interest rate more accurately reflects the true cost of borrowing
A) nominal
B) real
C) discount
D) market
B
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When all markets in the economy are simultaneously in equilibrium, we say
A) markets are complete. B) markets are perfect. C) there is disequilibrium. D) there is general equilibrium.
A tax cut that raises the after-tax wage rate will most likely result in more hours worked if
A) tax rates were low already. B) the relevant portion of the labor supply curve is upward sloping. C) the relevant portion of the labor supply curve is downward sloping. D) workers can be easily fooled.
In the long run,
a. both monopolists and perfectly competitive firms produce at minimum long-run average total cost. b. a monopolist will exit the industry if he is earning zero economic profit. c. a monopolist will always charge a higher price than he charges in the short run. d. consumer surplus is smaller if an industry is a monopoly than if it is perfectly competitive.
In an AD/AS model:
A. real GDP is shown on the horizontal axis. B. the potential GDP always slopes downwards. C. the GDP deflator always slopes upwards. D. the CPI is shown on the vertical axis.