The price of a gallon of gasoline at the pump increased by 10 percent at the same time that the inflation rate was 5 percent. The nominal price of gasoline ________, and the real price of gasoline ________.
A. increased; decreased
B. increased; did not change
C. increased; increased
D. decreased; increased
Answer: C
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Gross revenue minus explicit and implicit costs is equal to
A) net worth. B) accounting profit. C) economic profit. D) opportunity cost.
To calculate value added, we need to subtract
A) only the cost of domestically-produced intermediate inputs. B) only the cost of foreign-produced intermediate inputs. C) the cost of domestic- and foreign-produced intermediate inputs. D) total imports.
During the 2007-2009 financial crisis, many households found themselves with debts to repay. How might this explain the consumer response to the 2008 Tax Rebate?
What will be an ideal response?
If you have a business opportunity that is pretty much a sure thing that will require you to borrow $1,000,000, but will return to you $200,000 a year in profit for ten years, this is
A. an unwise investment regardless of interest rates. B. an investment which depends on the interest rate that must be paid on the loan. C. a wise investment regardless of interest rates. D. an investment which will be more attractive when the interest rate is high.