The real rate of interest equals 5.0 percent and the anticipated rate of inflation is 3.0 percent. What does the nominal rate of interest? equal?
Ans: 8.0?%.
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Why do both households and societies face many decisions?
a) because resources are scarce b) because populations may increase or decrease over time c) because wages for households and therefore society fluctuate with business cycles d) because people, by nature, tend to disagree
The expansion path
A. is the collection of all input combinations at which the marginal rate of technical substitution equals the input price ratio. B. shows how the cost-minimizing input choices change as the firm's output level changes. C. shifts if the input price ratio changes. D. both a and c E. all of the above
In the figure above, the United States ________ helicopters per year
A) exports 480 B) exports 720 C) imports 480 D) imports 240
Refer to the diagram. If a firm produces output Q 1 at a unit cost of b, then the:
A. firm is not fulfilling the least-cost rule in employing resources.
B. firm may or may not be maximizing profits.
C. marginal product per dollar's worth of each resource employed is not the same.
D. firm has achieved minimum efficient scale.