If expectations are rational, the difference between the actual rate of inflation and the expected rate of inflation will be zero
a. True
b. False
Indicate whether the statement is true or false
False
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If a technological change lowers the wage of unskilled workers, it is an example of:
A) a skill-biased technological change. B) an unskilled-biased technological change. C) a preferential-biased technological change. D) a statistical-biased technological changes.
Refer to Figure 18-1. Area B + C represents
A) the portion of sales tax revenue borne by consumers. B) the portion of sales tax revenue borne by producers. C) the excess burden of the sales tax. D) sales tax revenue collected by the government.
Exhibit 36-1 Bond FaceValueof Bond Price ofthe Bond Annual CouponPayment A $1,000 $850 $25 B $1,000 $950 $41 C $1,000 $1,100 $52 D $1,000 $1,100 $32 E $1,000 $1,000 $50 Refer to Exhibit 36-1. The coupon rate for bond C is
A. 0.05 percent. B. 5.2 percent. C. 4.7 percent. D. 100 percent.
Imagine that there are two countries, Home and Far Far Away, and that residents of each own only one asset, domestic land yielding an annual harvest of mangoes. Assume that the yield on the land is uncertain
Half the time, Home's land yields a harvest of 5,000 tons of mangoes at the same time as Far Far Away's land yields a harvest of 2,500 tons. The other half of the time the outcomes are reversed. The average for each country mango harvest is A) 2500. B) 2750. C) 3500. D) 3750. E) 3000.