Billy's Bean Bag Emporium produced 300 bean bag chairs but sold only 275 of the units it produced. The average cost of production for each unit of output produced was $100 . The price for each of the 275 units sold was $95 . Total profit for Billy's Bean Bag Emporium would be
a. -$3,875.
b. $26,125.
c. $28,500.
d. $30,000.
a
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Which of the following equations best represents the long-term real interest rate? The long-term real interest rate =
A) the short-term real interest rate + the term structure effect + the default-risk premium + the expected rate of inflation B) the short-term nominal interest rate + the term structure effect + the default-risk premium - the expected rate of inflation C) the long-term nominal interest rate + the term structure effect + the default-risk premium - the expected rate of inflation D) the short-term nominal interest rate - the term structure effect - the default-risk premium + the expected rate of inflation
In Table 9.4, Market 1 would be in equilibrium if buyers believed lemons accounted for:
A. about 90.91% of the market. B. about 74.5% of the market. C. about 63.25% of the market. D. about 57.65% of the market.
Which of the following combinations is plausible, as it relates to a nation's balance of payments?
A. Current account = $+40 billion; capital account = $+20 billion; financial account = $-50 billion. B. Current account = $-50 billion; capital account = $+20 billion; financial account = $+30 billion. C. Current account = $+10 billion; capital account = $+40 billion; financial account = $+50 billion. D. Current account = $+30 billion; capital account = $-20 billion; financial account = $-50 billion.
Disinflation refers to a situation where:
A. Price level falls, but the rate inflation does not B. Price level rises, but the rate of inflation does not C. The rate of inflation falls, but the price level does not D. The rate of inflation rises, but the price level does not