If the nominal interest rate is less than the real interest rate, we know that
A) both the nominal or real interest rate must be negative.
B) the nominal interest rate must be equal to expected inflation.
C) expected deflation must be occurring.
D) expected inflation must be positive.
E) expected inflation must be zero.
C
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The consumer acquires a consumer surplus on a good if the marginal benefit is
A) equal to the price. B) greater than the price. C) less than the price. D) zero. E) less than the marginal cost.
Total cost of production refers to the:
A) sum of variable costs and fixed costs. B) product of variable costs and fixed costs. C) difference between variable costs and fixed costs. D) ratio of variable costs to fixed costs.
In recent years, "country risk analysis" has become an important part of international business. What do we mean by "country risk"? Briefly explain the factors that are involved in a country risk analysis
What will be an ideal response?
A lesson of the Enron collapse is that government regulation
A) always fails. B) can reduce but not eliminate asymmetric information. C) increases the problem of asymmetric information. D) should be reduced.