If at some output level for a firm price exceeds average total cost, then the firm is earning an economic profit
a. True
b. False
Indicate whether the statement is true or false
True
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Which of the following could cause nominal GDP to decrease, but real GDP to increase?
A) The price level rises and the quantity of final goods and services produced rises. B) The price level falls and the quantity of final goods and services produced falls. C) The price level rises and the quantity of final goods and services produced falls. D) The price level falls and the quantity of final goods and services produced rises.
One factor contributing to the rapid growth of the commercial paper market since 1970 is
A) the fact that commercial paper has no default risk. B) improved information technology making it easier to screen credit risks. C) government regulation. D) FDIC insurance for commercial paper.
A wage that allows people to pay for the necessities of life is known as a(n): a. equilibrium wage. b. minimum wage
c. living wage. d. fair wage. e. subsistence wage.
The real interest rate on a loan
a. is the amount that the consumer agrees to pay b. is always the same as the nominal rate c. is always greater than the nominal rate d. is only of concern when serious inflation occurs e. is the percentage increase in the lender's purchasing power that results from making the loan