To obtain a given real rate of return, lenders must charge a ________ nominal interest rate in the face of decreasing inflation.
A. regular
B. constant
C. lower
D. higher
Answer: C
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Increases in autonomous expenditure induce ________ in aggregate expenditure thereby making the multiplier ________
A) further increases; greater than one B) further increases; unnecessary C) further increases; less than one D) a decrease; less than one E) a decrease; greater than one
If a firm in a perfectly competitive market sells 100 units of output and total revenues are $500, which of the following statements are true? (i) Marginal revenue equals $5. (ii) Average revenue equals $5. (iii) Price equals $5
a. (i) only b. (iii) only c. (i) and (ii) only d. (i), (ii), and (iii)
The following graph shows the production possibilities curve for the economy with only two members, Silvia and Art. Silvia can produce either 50 pounds of beef or 2 computers per week, and Art can produce 100 pounds of beef or 1 computer per week. Both of them work 40 weeks per year.
How much of each good is produced if each worker fully specializes according to comparative advantage?
A. 4,000 pounds of beef and 80 computers B. 6,000 pounds of beef and 120 computers C. 8,000 pounds of beef and 120 computers D. 6,000 pounds of beef and 160 computers
The World View article titled "The Education Gap between Rich and Poor Nations" says that 85 percent of all Americans graduate from high school. This is an example of
A. Capital-intensive production. B. The inequitable distribution of income. C. A negative externality. D. Investment in human capital.