When interest rates go up, people are
a. More likely to borrow
b. Less likely to borrow
c. Does not affect a person's consumption
d. None of the above
b
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The real interest rate is negative if the inflation rate
A) equals zero. B) is less than the nominal interest rate. C) exceeds the nominal interest rate. D) is equal to the nominal interest rate. E) exceeds the real interest rate.
Answer the following statements true (T) or false (F)
1) If managers holding an auction release more information about the value of the item, they will reduce their profit. 2) Regardless of whether an auction's purpose is to sell a product or buy one, providing more information about the value of the auctioned item can benefit the auction's managers because bidders will have more confidence in their valuations. 3) Regardless of what policies a manager creates, it is unlikely that the manager can completely solve the principal-agent problem. 4) If restaurant managers have a policy that servers' tips are to be combined and then shared equally at the end of the day, this will incentivize all servers to to take the best care of their customers. 5) In general, if managers are able to make a job more appealing to an employee, this helps managers as it reduces labor turnover.
When the government increases taxes to provide traditional public goods, such as national security, there tends to be
a. widespread benefits and costs b. widespread costs and concentrated benefits c. concentrated benefits and costs d. widespread benefits and concentrated costs e. widespread costs and either widespread or concentrated benefits
Which of the following goods is likely to have the most elastic demand?
A. movie passes B. cigarettes C. electricity D. gasoline