Of the following, who would most likely be hurt by an unanticipated increase in the rate of inflation?
a. an individual with a 30-year fixed-rate home mortgage loan
b. the U.S. federal government because it has a large quantity of outstanding debt
c. lenders who have made long-term loans at fixed interest rates
d. Social Security recipients whose benefits are adjusted upward as the general level of prices increases
C
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If at its current production level, a perfectly competitive firm's marginal revenue and long-run marginal cost are equal to $1.50 and its long-run average cost is $1.50, which of the following statements is true?
A) The firm should expect the market price of its product to fall. B) The firm should expect to earn positive economic profit indefinitely. C) The firm should expect the market price of its product to increase. D) The firm is earning zero economic profit.
In regulated industries, the optimal regulation is to set price such that MC=P.
Answer the following statement true (T) or false (F)
An economy produces 10X, 20Y, and 30Z in a year. Base-year prices for these goods are $1, $2, and $3, respectively. Current-year prices for these goods are $2, $3, and $4, respectively. What is Real GDP?
A) $180 B) $200 C) $140 D) $240 E) none of the above
The lack of investment in developing countries is at least in part attributable to:
A. high levels of foreign aid. B. low levels of domestic savings. C. inappropriate education. D. overpopulation.