The difference between the nominal rate of interest and the real rate of interest is
A. government regulatory charges.
B. the anticipated rate of inflation.
C. administrative overhead charges.
D. handling charges.
Answer: B
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The interest payment on a bond is called
A) the coupon payment. B) the face value. C) principal. D) the interest rate.
Let's use the example from the text: The Nick Rudd Ice Company is a monopoly. Its goal, then, is to
a. hire as many workers as possible b. maximize profit c. produce as much as possible to capture market share d. produce where marginal cost equals price e. charge the highest price possible
When elasticities of supply and demand are both equal to 1, the burden of a tax will be:
A. entirely on sellers. B. half on buyers and half on sellers. C. mostly on buyers. D. entirely on buyers.
The percentage of additional income that will have to be paid in tax is an individual's _____
a. marginal tax rate b. average tax rate c. proportional tax rate d. flat tax rate