The money interest rate may be a misleading indicator of real borrowing costs when

a. the unemployment rate is high.
b. the actual rate of unemployment exceeds the natural rate of unemployment.
c. the inflation rate is high.
d. real output is declining.


C

Economics

You might also like to view...

When more workers are hired, the firm's output expands at an increasing rate only

a. when the law of diminishing returns is operative b. under conditions of noncompeting labor markets c. if each worker's MPP is positive d. when technology is improved e. when the gains from specialization of labor outweigh all other factors affecting labor productivity

Economics

_____________is the extra output or change in the total product caused by the addition of one more unit of variable output.

Fill in the blank(s) with the appropriate word(s).

Economics

Consumer surplus is

A. the total difference between the total amount that consumers would have been willing to pay for an item and the total amount that they actually pay. B. the total difference between the total costs firms incur in producing an item and the utility consumers derive from purchasing the item. C. the total difference between the total amount that consumers actually pay for an item and the total amount that they would have been willing to pay. D. the total difference between the utility consumers derive from purchasing an item and the total costs firms incur in producing the item.

Economics

Refer to Scenario 9.10 below to answer the question(s) that follow. SCENARIO 9.10: Investors put up $1,040,000 to construct a building and purchase all equipment for a new cafe. The investors expect to earn a minimum return of 10 percent on their investment. The cafe is open 52 weeks per year and serves 900 meals per week. The fixed costs are spread over the 52 weeks (i.e. prorated weekly). Included in the fixed costs is the 10% return to the investors and $2,000 in other fixed costs. Variable costs include $2,000 in weekly wages, and $600 per week in materials, electricity, etc. The cafe charges $6 on average per meal.Refer to Scenario 9.10. In the short run, if the cafe decides to stay open, it will make weekly operating profits of

A. -$2,800. B. $0. C. $2,800. D. $5,400.

Economics