A headline reads "Good weather increases the lettuce crop." This situation would lead to a(n):
a. Decrease in the price of lettuce and an increase in the quantity purchased
b. Increase in the price of lettuce and quantity purchased
c. Decrease in the price of lettuce and decline in quantity purchased
d. Increase in the price of lettuce and decrease in quantity purchased
Answer: a. Decrease in the price of lettuce and an increase in the quantity purchased
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If the wage rate is $10 per hour and the rental rate is $5 per hour, then the vertical intercept of the isocost line
a. is $2. b. is 50 cents. c. is $5. d. can not be determined without more information.
If you expect the inflation rate to be 15 percent next year and a one-year bond has a yield to maturity of 7 percent, then the real interest rate on this bond is
A) 7 percent. B) 22 percent. C) -15 percent. D) -8 percent.
For foreigners, the intersection of the demand for US dollars and the supply of US dollar is known as the
a. Inflation rate b. Exchange rate c. Price d. Quantity
The marginal product of labor can be defined as the change in
a. profit divided by the change in labor. b. output divided by the change in labor. c. labor divided by the change in output. d. labor divided by the change in total cost.