The difference between the money interest rate and the real interest rate is the
a. prime interest rate.
b. nominal interest rate.
c. exchange rate.
d. inflationary premium.
D
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What does annual economic growth refer to?
A) annual increases in GDP B) annual increases in consumption spending C) annual increases in investment spending D) annual increases in Real GDP E) none of the above
John only had $40 to spend and couldn't decide whether to buy a new pair of jeans or to go to an amusement park. He finally decided to spend his money on the amusement park. What was the opportunity cost of his decision?
A. $40 B. New pair of jeans C. Trip to amusement park D. No opportunity cost was involved.
A firm's revenue from selling its product minus the cost of inputs purchased from other firms is called:
A. production costs. B. profits. C. investment. D. value added.
Refer to the information provided in Figure 3.8 below to answer the following question(s).
Figure 3.8Refer to Figure 3.8. Assume there are only two people in the market for baseball caps: Alex and Ryan. Along the market demand curve for baseball caps, at a price of ________, quantity demanded would be ________.
A. $10; 12 B. $8; 14 C. $10; 6 D. $8; 25