When the anticipated rate of inflation is 2 percent and the real rate of interest is 4 percent, the nominal rate of interest is
A. 0 percent.
B. 1 percent.
C. 2 percent.
D. 6 percent.
Answer: D
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Under which of the following monopoly pricing methods is the average price paid by a consumer equal to the marginal willingness to pay by that consumer:
A. First degree price discrimination B. Second degree price discrimination C. Third degree price discrimination D. Both (a) and (b) E. Both (b) and (c) F. Both (a) and (c) G. All of the above H. None of the above
What rule must be followed to obtain an efficient allocation of resources?
a. P = AC. b. P = MC. c. P = AR. d. MR = AC.
In the long run, a monopolistically competitive firm produces at efficient scale
a. True b. False Indicate whether the statement is true or false
You have an hour between your economics and math classes. What is the opportunity cost of that time if you use it to complete your math homework instead of your economics homework?
A. the economics homework you could have completed B. the math homework you chose to complete C. the cost of your calculator and math textbook D. zero, because it doesn't cost any money to do your math homework