The amount of interest owed on a loan of $40,000 after a year at an interest rate of 4 percent is:
A. $1,600.
B. $40,400.
C. $160.
D. $41,600.
Answer: A
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Consider a two-good production economy in which both goods are produced with fixed proportions production functions. Then, some efficient allocations will exhibit unemployment of some factor providing:
a. the firms use the inputs in different proportions. b. the firms exhibit diminishing returns to scale. c. the firms exhibit increasing returns to scale. d. production can never be efficient if there are unemployed inputs.
In economics, choosing one activity means:
A. choosing not to take advantage of another opportunity. B. people always act rationally. C. people signal they only like that activity. D. that activity must be observable to be studied.
High levels of inflation ________ the real value of money and, hence, ________ short-run equilibrium output.
A. reduce; increase B. increase; increase C. increase; decrease D. reduce; decrease
What is the percentage of income received by the lower three quintiles on line J?
