If the nominal interest rate in an economy is 9% and the expected inflation rate is 6%, then the expected real interest rate in the economy is:
A) 15%. B) 3%. C) 6%. D) 9%.
B
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Which of the following statements about perfect price discrimination is false?
A) For the price-discriminating firm, its marginal revenue curve coincides with its demand curve. B) There is no consumer surplus if a firm engages in perfect price discrimination. C) A condition for perfect price discrimination is that it must be costlier to service some customers than others. D) Perfect price discrimination occurs when the seller charges the highest price each consumer would be willing to pay for the product.
At the time the _________ was passed, the ratio of total earnings for African American men was 62% of their white counterparts. Today the gap is smaller, although it still has not closed.
a. Fair Labor Standards Act of 1938 b. Civil Rights Act of 1964 c. Taft-Hartley Act of 1947 d. National Labor-Management Relations Act of 1935
According to economist A. P. Lerner, taking income from a wealthy individual and giving it to a poorer individual would
a. decrease the economy's total utility b. decrease the economy's investment rate c. eventually increase poverty in the economy d. lessen the incentive to work e. increase the economy's total utility
If the demand curve falls below the ATC curve but lies above AVC, then the firm should
A. operate in the short run and the long run. B. should shut down. C. operate in the short run but not the long run. D. set price = marginal cost.