It is possible to observe a positive nominal interest rate together with a negative real interest rate
a. True
b. False
Indicate whether the statement is true or false
True
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A good or service with a positive externality is one which ______
A. everyone wants to have access to B. is produced in the social interest C. the marginal social benefit exceeds the marginal private benefit D. the marginal external benefit exceeds the marginal private benefit
Explain the meaning of the word "convergence" in the context of economic growth and standards of living
What will be an ideal response?
Public goods are goods that have
A) only a few low income consumers. B) clear property right. C) nonexcludability and nonrivalrous. D) features that cannot be addressed by creating property rights.
There are two restaurants that serve equally good Mexican food in a small college town. One of them charges an average of $7 per plate, and usually you have to wait an hour to be seated. The other restaurant charges an average of $9 per plate, and you can usually be seated right away. How does the cost of consumption compare across these two restaurants?
a. For people with a very high opportunity cost of time compared to others, the restaurant with the higher money price makes more sense because they are willing to accept a higher money price in return for a lower time price. b. For people with a low opportunity cost of time compared to others, the restaurant with the higher money price makes more sense because they do not have to pay a high time price. c. For people with a very high opportunity cost of time compared to others, the restaurant with the lower money price makes more sense because they are relatively more willing to pay a high time price. d. The restaurant with the lower money price makes more sense to both high opportunity cost of time and low opportunity cost of time consumers.