Refer to the scenario above. In equilibrium, ________
A) Mathew will choose good and Peter will choose bad
B) Peter will choose good and Mathew will choose bad
C) both Mathew and Peter will choose bad
D) both Mathew and Peter will choose good
C
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If the nominal interest rate is greater than the real interest rate in an economy:
A) the real interest rate must be negative. B) inflation must be positive in the economy. C) inflation must be zero in the economy. D) inflation must be negative in the economy.
The equilibrium level of regulation is _____
a. determined where marginal political gains to the special interests are equal to the marginal political costs of the foregone regulation b. determined where the marginal benefits from the regulation are equal to the marginal costs of the regulation c. determined where the marginal political benefits to the special interests are equal to zero d. determined where the marginal benefits from the regulation are equal to zero
Suppose that, in the long run, the price of feature films rises as the movie production industry expands. We can conclude that movie production is a(n):
a. increasing-cost industry. b. constant-cost industry. c. decreasing-cost industry. d. marginal-cost industry.
After an employer pays the cost of educating a worker,
a. the worker has a higher level of human capital. b. the worker should become more productive. c. the worker might look for another job unless his employer pays him more. d. All of the above are correct.