The real interest rate on a loan
a. is the amount that the consumer agrees to pay
b. is always the same as the nominal rate
c. is always greater than the nominal rate
d. is only of concern when serious inflation occurs
e. is the percentage increase in the lender's purchasing power that results from making the loan
E
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Labor productivity measures
A) the growth of real output. B) real output per labor hour. C) the growth in the quantity of labor. D) the growth of per capita real GDP.
A downward sloping income-demand curve indicates that the good is a necessity.
Answer the following statement true (T) or false (F)
Assume that the relative prices of capital and labor have not changed. As a firm's expenditures for capital and labor increase, its isocost line
A. shifts out parallel to the original isocost line. B. rotates outward on the Y-intercept. C. shifts in parallel to the original isocost line. D. rotates outward on the X-intercept.
Most of the world's population:
A) is poor relative to the United States. B) is about as well off as the average person in the United States. C) is wealthy relative to the United States. D) cannot be compared to the United States.