The actual income distribution might be more equal than current official figures suggest because current official figures ignore the return on human capital
Indicate whether the statement is true or false
FALSE
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During the 1990s, Canada had an average inflation rate of 1.5 percent while Columbia had an average inflation rate of 21.5 percent. You would expect that nominal interest rates in Canada are
A) unpredictably different from nominal interest rates in Columbia. B) greater than nominal interest rates in Columbia. C) less than nominal interest rates in Columbia. D) not comparable to nominal interest rates in Columbia. E) equal to nominal interest rates in Columbia.
Firms in perfectly competitive industries have a ________ individual demand curve when the price is on the vertical axis and the quantity is on the horizontal axis. The shape of the curve is result of the firm being a ________
A) horizontal; price taker B) downward sloping; price maker C) vertical; price taker D) downward sloping; price taker
Given the information in the table above, if the world equilibrium price of widgets were 4 cloth, then
A) both countries could benefit from trade with each other. B) neither country could benefit from trade with each other. C) each country will want to export the good in which it enjoys comparative advantage. D) neither country will want to export the good in which it enjoys comparative advantage. E) both countries will want to specialize in cloth.
In a perfectly competitive market, positive economic profits act to
A) attract new entrants into the industry. B) drive potential competitors away from the industry. C) prevent reinvestment on the part of firms within the industry. D) signal resource owners elsewhere not to invest their capital in this industry.