Economic theory suggests that ________ interest rates are ________ important than ________ interest rates in explaining investment behavior
A) nominal; more; real
B) real; less; nominal
C) real; more; nominal
D) market; more; real
C
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Refer to Table 19-7. Suppose that a simple economy produces only four goods and services: iPods, t-shirts, bottled water, and oranges. Calculate nominal GDP for this simple economy
What will be an ideal response?
An important assumption that is made when constructing a supply schedule is
a. only price and quantity matter in determining supply. b. firms always want to sell a certain amount of a product. c. supply is too important to be left to the marketplace. d. all other determinants of supply are held constant. e. demand has a positive slope.
When an individual weighs her options and makes a choice that maximizes her benefit at the minimum cost, economists refer to this as a process of
a. rational decision making. b. objective decision making because the value of goods is determined objectively. c. marginal management analysis. d. random decision making.
Recall the Application about food and drink pricing during "happy hour" at bars and restaurants to answer the following question(s).Recall the Application. The happy hour combination of higher demand and lower prices is in accordance with the model of perfect competition.
Answer the following statement true (T) or false (F)