A Major League Baseball player signs a contract that pays $27 million over 5 years. The $27 million is the contract's ________ value.
A. real
B. implicit
C. external
D. nominal
Answer: D
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When producers are hard to monitor and marginal costs differ across producers, ________ are an effective method to achieve efficient use of a ________
A) individual transferable quotas; public good B) marginal private benefits; public good C) individual transferable quotas; common resource D) individual transferable quotas; excludable good
Suppose a consumer is spending all of his/her income on two goods, A and B, in a manner where MUa = 15 and MUb = 80, and the Pa = $5 and the Pb = $20 . Then the consumer:
a. is maximizing his/her utility. b. should increase his/her purchases of B and decrease the purchases of A. c. should spend more money on both goods. d. should spend less money on both goods. e. should increase the purchases of A and decrease the purchases of B.
Assume that for a given year, the nominal interest rate is 9 percent while inflation rises to 11 percent indicating a 4 percent higher rate than anticipated. Which group of people is made better off by the inflation?
a. Those who lend at fixed interest rates b. Those who borrow at fixed interest rates c. Those who borrow at variable interest rates d. Those who receive fixed incomes e. Those who save at variable interest rates
Tax cuts affect only aggregate demand not aggregate supply
a. True b. False Indicate whether the statement is true or false