If the nominal interest rate is 5 percent and the expected inflation rate is 2.1 percent, the real interest rate is
A. 1.9 percent.
B. 7.1 percent.
C. 4.1 percent.
D. 2.9 percent.
E. 0.29 percent.
Ans: D. 2.9 percent.
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Suppose Chip's Chips produces bags of potato chips. An example of a fixed cost for this company would be:
A. the factory building. B. the deep fryer. C. a potato peeling machine. D. All of these are examples of fixed costs.
A movement along the MP curve ________
A) implies an automatic adjustment of the interest rate B) implies an autonomous adjustment to the interest rate C) implies an autonomous adjustment of aggregate demand D) all of the above E) none of the above
Table 11-1 Quantity (units)18161412104Price per unit (dollars)123 4 5 6 Total cost (dollars)44 3832262014Table 11-1 shows demand and total cost schedules for the monopolist Monopoliteria. Monopoliteria’s profit-maximizing price per unit in dollars is
A. 1 B. 3 C. 5 D. 4 E. 6
If a worker has chosen a quantity of labor where the marginal value of leisure exceeds the wage rate, she would be better off by
a. choosing less leisure. b. providing fewer hours of labor. c. providing more hours of labor. d. staying at this combination of labor and consumption.