Though he has retired as a professional football receiver, Jerry Rice still earns a sizeable annual income from endorsements. His economic rent is so high because
A. football fans tend to spend a substantial amount of money on sports memorabilia.
B. there is still a high demand for his star appeal.
C. he is a successful coach in the National Football League.
D. people do not like NFL players.
Answer: B. there is still a high demand for his star appeal.
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You deposit $10,000 in a savings account today. If the interest rate is 3%, what is the value in 20 years?
What will be an ideal response?
At the Federal Reserve,
a. the nation's monetary and fiscal policies are made by the Federal Open Market Committee, which meets about every six weeks. b. the nation's monetary and fiscal policies are made by the Federal Open Market Committee, which meets twice a year. c. the nation's monetary policy is made by the Federal Open Market Committee, which meets about every six weeks. d. the nation's monetary policy is made by the Federal Open Market Committee, which meets twice a year.
Exhibit 13-3 A monopolist
In Exhibit 13-3, if this industry is regulated and the regulatory commission sets price equal to marginal cost, then:
A. this firm would earn excess profit. B. price would equal ATC. C. the firm would suffer losses. D. revenue would just be sufficient to cover costs.
According to the Taylor rule, the Federal Reserve lowers the real interest rate as the output gap ________ or the inflation rate ________.
A. decreases; increases B. increases; increases C. increases; decreases D. decreases; decreases