Suppose the economy goes from a point on its production possibilities frontier (PPF) to a point below that PPF. Assuming that the PPF has not shifted, this could be due to
What will be an ideal response?
an increase in unemployment of some resources.
A new Law that interferes with production efficiency
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What percentage of bank assets were in security holdings in 2012?
A) 5% B) 13% C) 22% D) 37%
With peak-load pricing, a firm
A) charges more for a good during periods of high demand. B) charges more for a hotel room the higher up the mountain it is. C) charges less for a good during periods of high demand, because of regulatory reasons. D) is generally used during January and February.
Is it possible for an investor to allocate more than 100% of their assets to the stock market?
A) No, this is not theoretically plausible. B) No, federal law prohibits this kind of investment. C) Yes, investors can borrow money to buy stocks on margin. D) none of the above
Which of the following describes the correct relationship among the nominal interest rate, the real interest rate, and the inflation rate?
a. Real interest rate = nominal interest rate + inflation rate b. Real interest rate = nominal interest rate - inflation rate c. Nominal interest rate = real interest rate - inflation rate d. Inflation rate = real interest rate - nominal interest rate e. Inflation rate = nominal interest rate + real interest rate