A binding price ceiling causes a shortage in the market

a. True
b. False
Indicate whether the statement is true or false


True

Economics

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An individual plans to borrow a sum of $10,000 for one year. The nominal interest charged on the borrowed sum is 6%

a. If he takes the loan, what will be the interest amount and the total amount that he would have to pay at the end of the year? b. If the rate of inflation in the economy is 10%, then is it a good idea for him to take the loan? Why or why not?

Economics

Network effects occur is the costs of production are lower than the costs of production

Indicate whether the statement is true or false

Economics

If the money supply grew by 6 percent and velocity fell by 2 percent, nominal GDP would: a. fall by 4 percent

b. rise by 4 percent. c. rise by 8 percent. d. rise by 12 percent.

Economics

Refer to the above table. At what quantity of labor is the average product of labor maximized?

A. 2 units B. 1 unit C. 6 units D. 3 units

Economics