Which of the following statements is most correct?
A. We cannot compute either the ex post or ex ante real interest rates accurately.
B. We can accurately compute the ex ante real interest rate but not the ex post real rate.
C. We can always compute the ex post real interest rate but not the ex ante real rate.
D. None of the statements are correct.
Answer: C
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When a firm hired its tenth worker, its factory output increased by four units per month. Would you expect the firm's output to increase by eight more units per month if the firm hired two more workers?
What will be an ideal response?
Refer to Figure 4-9. What is the area that represents producer surplus after the imposition of the price floor?
A) B + E + F B) A + B + E C) B + E D) B + C + D + E
Which of the following is included in personal income but not in national income?
a. Corporate profits b. Social Security payments c. Compensation for workers d. Proprietors' income
Refer to Figure 2-11. The shift of the production possibilities frontier from A to B can best be described as
a. Simultaneous Technological advances in the book and DVD industries.
b. Reallocation of resources away from the production of DVDs and toward the production of books.
c. Economic growth
D. All of the above are correct