The expected rate of inflation is built into current nominal rates of interest.
a. true
b. false
Ans: a. true
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When there is a shortage in the market, the quantity sold is
A) greater than the quantity supplied. B) equal to the quantity supplied. C) less than the quantity supplied. D) less than the quantity bought.
Refer to Figure 4-3. If the market price is $3.50, what is the consumer surplus on the first ice cream cone?
A) $0 B) $0.50 C) $3.50 D) $9.00
An increase in market demand will cause an increase in industry output in the long run because
A. new firms enter the industry. B. new firms enter the industry and all firms increase their output. C. all firms decrease their output but more new firms enter. D. no firms enter but the existing firms increase their output.
Productivity per worker has increased in the past primarily through
a. hiring more teenagers. b. hiring more women. c. medical benefits. d. technological development.