Other things constant, a rise in which of the following would tend to increase the nominal interest rate?
A) The rate of time preference
B) The risk premium
C) The expected rate of inflation
D) Any of the above.
D
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According to the Constitution, the President sets tariff rates
Indicate whether the statement is true or false
To reduce moral hazard, a firm may
A) pay workers at a piece rate. B) offer a year-end bonus if firm profits are up. C) offer stock options. D) All of the above.
Intermediation in the financial system is the process of:
A. an arbitrator working with government and private firms to create an efficient financial system. B. bringing together buyers and sellers in a market. C. negotiating terms of repayment when agreements between buyers and sellers are in default. D. government intervention in a financial market.
The following graph shows the production possibilities curve for the economy with only two members, Silvia and Art. Silvia can produce either 50 pounds of beef or 2 computers per week, and Art can produce 100 pounds of beef or 1 computer per week. Both of them work 40 weeks per year.
Silvia's opportunity cost of producing one computer is ________ pounds of beef.
A. 1/25 B. 1/50 C. 25 D. 50