Which of the following statements is correct?
a. Interest would not exist in a nonmonetary economy.
b. The present value of a future dollar payment is inversely related to both the interest rate and to how far in the future the payment will be received.
c. A "positive rate of time preference" means that an individual would rather save than consume.
d. During an extended inflationary period, the money (or nominal) interest rate will usually be lower than the real rate of interest.
B
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The difference between producer surplus and profit is always the associated with
A) opportunity costs. B) total costs. C) variable costs. D) fixed costs.
If a person produces capital goods, she sacrifices current production of consumer goods in order to obtain the capability of producing more goods and services in the future. This is called roundabout production
a. True b. False
A supply curve illustrates a(n) ____ relationship between ____ and ____
a. direct; price; supply b. direct; price; quantity demanded c. direct; price; quantity supplied d. inverse; price; quantity demanded
Specialization—the division of labor—enhances productivity and efficiency by:
A. allowing workers to take advantage of existing differences in their abilities and skills.
B. avoiding the time loss involved in shifting from one production task to another.
C. allowing workers to develop skills by working on one, or a limited number, of tasks.
D. all of the means identified in the other answers.