If the nominal interest rate is 15 percent and the inflation rate is 5 percent, then what is the real interest rate?
a. 10 percent
b. 20 percent
c. 3 percent
d. 5 percent
a
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Refer to Figure 3.4. This is an example of
A) an assurance game. B) a pure coordination game. C) a battle of the sexes game. D) a chicken game.
All group decisions are Pareto superior moves
a. True b. False
A visual expression of income distribution is depicted by
a. the Gini coefficient b. the IRS curve for incomes held by households c. supply and demand curves for the four resources: labor, capital, land, and entrepreneurship d. the Lorenz curve e. the diagonal on a Gini distribution
A program of protection that results in preserving jobs in certain industries
a. raises average productivity in all sectors of the economy. b. does so at very high cost to consumers of the products from those industries. c. is an efficient way to preserve employment, and is cheaper than other forms of maintaining full employment. d. is an effective way of encouraging innovation and improvement in production.