The money rate of interest that lenders pay for borrowed funds minus the real rate of interest equals the
a. nominal rate of interest.
b. present value of an asset.
c. inflationary premium.
d. productivity of capital.
C
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What does empirical research suggest about the existence of pollution havens?
What will be an ideal response?
Suppose the tax on automobile tires is increased so that the tax goes from being a "medium" tax to being a "large" tax. As a result, it is likely that
a. tax revenue increases, and the deadweight loss increases. b. tax revenue increases, and the deadweight loss decreases. c. tax revenue decreases, and the deadweight loss increases. d. tax revenue decreases, and the deadweight loss decreases.
Moving along which curve does the money wage rate and the price level change in the same proportions?
What will be an ideal response?
In the short run, which of the following is FALSE about the shutdown point?
A. Product price is equal to the minimum average variable cost. B. Total revenue is equal to total fixed cost. C. Total revenue is equal to total variable cost. D. Price multiplied by quantity must be equal to minimum average variable cost multiplied by quantity.