Subsidy
What will be an ideal response?
A payment made by the government to a producer
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Involuntary part-time workers are:
A. short-term unemployed workers. B. chronically unemployed. C. considered out of the labor force. D. not counted as unemployed.
Suppose a consumer's utility function is U(F0, F1) = F00.5F10.5, where F0 represents food consumed this year and F1 represents food consumed next year. For that utility function, the marginal utility of food consumed this year is 0.5 × (F1/F0)0.5 and the marginal utility of food consumed next year is 0.5 × (F0/F1)0.5. Suppose the consumer earns $100 this year and nothing in the next, food costs $1 per unit in both years, and the interest rate is 10%. How much food does she consume this year, and how much does consume tomorrow?
A. She consumes 45 units of food this year and 55 units of food next year. B. She consumes 50 units of food this year and 50 units of food next year. C. She consumes 55 units of food this year and 50 units of food next year. D. She consumes 50 units of food this year and 55 units of food next year.
This year, Shirts Inc purchased $1,000 worth of silk from the Silky Silkworm Company, $100 worth of buttons from Barney's Buttons, and $200 worth of thread from Tracy's Thread Company. Shirts Inc sold the shirts they produced for $2,000 . As a result of these transactions, how much did Shirts Inc contribute to GDP this year?
a. $700 b. $1,300 c. $2,000 d. $2,700 e. $3,300
If the annual real interest rate on a 10-year inflation-protected bond equals 1.5 percent and the annual nominal rate of return on a 10-year bond without inflation protection is 4.2 percent, what average rate of inflation over the ten years would make holders of inflation-protected bonds and holders of bonds without inflation protection equally well off?
A. 4.2 percent B. 2.7 percent C. 1.5 percent D. 5.7 percent