If Nate takes out a $5,000 loan for one year at 10 percent annual interest, the principal is:
A. $500.
B. $5,000.
C. $1000.
D. $5,500.
Answer: B
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The normal level of unemployment that persists in an economy in the long run is:
A. also called the equilibrium rate of underemployment. B. zero when the market is equilibrium. C. always achieved in the real world. D. called the natural rate of unemployment.
According to the rational expectations hypothesis, the occurrence of unemployment is due to
A. downwardly rigid wages. B. imperfect information. C. unpredictable shocks. D. a deficient level of aggregate demand.
Refer to Figure 2.1. What is the opportunity cost of increasing production of manufactured products from 500 tons to 600 tons per year?
A) 200 tons of agricultural products per year B) 400 tons of agricultural products per year C) 500 tons of agricultural products per year D) 600 tons of agricultural products per year
Based on the assumptions in the Application, should Rory hire a gardener or cut the weeds himself?
A) He should hire the gardener because he would save $800. B) He should cut the weeds himself because he would save $1,000. C) He should hire the gardener because he would save $1,000. D) He should cut the weeds himself because he would save $200.