You bought some shares of stock and, over the next year, the price per share decreased by 7 percent and the price level decreased by 9 percent. Before taxes, you experienced
a. both a nominal gain and a real gain.
b. a nominal gain and a real loss.
c. a nominal loss and a real gain.
d. both a nominal loss and a real loss.
c
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An increase in the price of a particular bond implies an increase in the interest rate for that bond.
Answer the following statement true (T) or false (F)
The threat of a large fine for failure to pay income taxes is an example of
A) the excessive power of the Internal Revenue Service. B) the ineffectiveness of incentives to get people to pay their taxes. C) a negative incentive to get all people to pay taxes. D) people failing to consider all the benefits the government provides them.
Government agencies, such as the National Science Foundation, subsidize basic research because in the absence of a subsidy too little research would be conducted
a. True b. False Indicate whether the statement is true or false
If a nondiscriminating imperfectly competitive firm is selling its 100 th unit of output for $35, its marginal revenue:
A. may be either greater or less than $35. B. will also be $35. C. will be less than $35. D. will be greater than $35.