If the nominal interest rate is 7 percent and the inflation rate is 1 percent, the real interest rate is approximately
A) 7 percent.
B) 6 percent.
C) 8 percent.
D) -6 percent.
B
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What is the term that explains why voters often lack knowledge of pending legislation, and lack knowledge of the views of candidates for office on a range of issues that affect their own (the voters') welfare?
A) rational ignorance B) regulatory capture C) the voting paradox D) logrolling
The main differences between the bank and the nonbank institutions include all of the following EXCEPT
A) banks are regulated by the Fed while nonbank institutions are not. B) banks obtain the funds to buy investment by attracting deposits while nonbank institutions borrow funds. C) banks hold more equity then nonbank institutions. D) banks' balance sheets include assets and liabilities while nonbank institutions' balance sheets include only liabilities.
Suppose the cost of producing two goods, x and y, can be represented as C = ax + by + cxy. If there are economies of scope, then which of the following must be TRUE?
A) c > 0 B) a + b = -c C) c = 0 D) c < 0
Jane makes 1000 items a day. Each day she spends 8 hours producing those items. If hired elsewhere she could have earned $250 an hour. The item sells for $15 each. Production occurs seven days a week. If the explicit costs total $150,000 per month, what is her accounting profit?
a. $300,000 b. $60,000 c. $450,000 d. $240,000