If an economy is represented by a point along its production possibilities curve
A) it can produce more of one product only if it produces less of another product.
B) it cannot produce more of one product unless it stops producing the other product entirely.
C) it can produce more of one product even if it does not produce less of another product.
D) it cannot possibly produce more of one product, even if it produces less of another product.
A
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Suppose inflation is expected to be 5 percent next year, and you and your employer agree to a 6 percent increase in your nominal, or monetary, wage. If inflation turns out to be 5%, what is your nominal wage increase?
In calculating the current yield for a bond the:
A. present value of the capital gain/loss is ignored. B. coupon payment and purchase price is all that is needed. C. present value of the coupon payments is the only important consideration. D. present value of the final payment is the only important consideration.
Sellers will opt out of markets in which
What will be an ideal response?
The amount of output lost when the inflation rate is reduced by one percentage point is called
A. the Solow residual. B. Okun's law. C. Planck's constant. D. the sacrifice ratio.