The natural real GDP will ________ following a fall in energy prices because
A) rise; labor productivity increases.
B) fall; labor productivity declines.
C) rise; employment is more attractive relative to leisure.
D) A and C are both correct
D
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The above figure shows the marginal social benefit and marginal social cost curves of chocolate in the nation of Kaffenia. There is no external benefit nor external cost. The demand curve for chocolate is the same as the
A) marginal social cost curve of chocolate. B) marginal social benefit curve of chocolate. C) opportunity cost curve of chocolate. D) marginal social benefit curve minus the marginal social cost curve of chocolate.
You agree to lend $1,000 for one year at a nominal interest rate of 10%. You anticipate that inflation will be 4% over that year. If inflation is instead 3% over that year, which of the following is true?
A) The person who borrowed the $1,000 will be worse off as a result of the unanticipated decrease in inflation. B) The real interest rate you earn on your money will be negative. C) The purchasing power of the money that will be repaid to you will be lower than you expected. D) The real interest rate you earn on your money is lower than you expected.
A downward-sloping portion of a long-run average total cost curve is the result of:
a. economies of scale. b. diseconomies of scale. c. diminishing returns. d. the existence of fixed resources.
Last year Sam's Hamburger Shop paid all its expenses, including wages, salaries, rent, and all inputs. The $18,000 remaining last year was
a. interest b. NNP c. proprietor's income d. GDP e. NDP