The nominal interest rate is 6 percent and the inflation rate is 3 percent. What is the real interest rate?
a. 9 percent
b. 2 percent
c. 18 percent
d. 3 percent
d
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Game theory is
A. the study of how people behave in strategic situations. B. the collusion of a few powerful firms to create monopoly power. C. the act of price-fixing to share markets. D. the division of a market into non-competitive areas, creating regional monopolies.
The law of increasing relative costs is due to
A) taxes. B) scarcity. C) the fact that it is more difficult to use resources efficiently the more society produces. D) the fact that resources not are perfectly adaptable for alternative uses.
When a firm hires a worker for one hour, the marginal cost to that firm equals the:
A. hourly wage of that worker. B. diminishing marginal productivity of that worker. C. price of each item that the worker produces in that hour. D. average total cost of production at the quantity produced.
Which of the following is a feature of an M-Form organization?
a. divisions can respond more easily to changes in customer demand b. it is difficult to maintain customer relationships c. coordination across divisions is simple and does not take much management time d. evaluating employees is easier because managers typically are similarly trained