When the inflation rate rises, the purchasing power of nominal income:
A. remains unchanged.
B. decreases.
C. increases.
D. changes by the inflation rate minus one.
Answer: B
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The exchange rate is the ________.
A. market on which currencies of various nations are traded for one another B. rate at which two currencies can be traded for each other C. quantity of foreign currency assets held by a government for the purpose of purchasing the domestic currency in the foreign exchange market D. price of the average domestic good or service relative to the price of the average foreign good or service, when prices are expressed in terms of a common currency
A single-price monopoly has marginal revenue and marginal cost equal to $19 at 15 units of output where the price on the demand curve is $38. At this output, average total cost is $15. What is the total profit earned?
A) $225 B) $285 C) $345 D) $570 E) $19
If the nominal interest rate is high and rising, a possible cause is
A) increased lending activity. B) a rising inflation rate. C) a falling real interest rates. D) increased government borrowing.
The marginal products of the first, second, and third workers are 50, 34, and 22, respectively. If four workers can produce 116 units of output, then the marginal product of the fourth worker is
A. 10. B. 12. C. 22. D. 116.