The nominal return on an inflation-protected bond equals a fixed real return:
A. plus the actual rate of inflation.
B. divided by the price level.
C. plus the expected rate of inflation.
D. minus the actual rate of inflation.
Answer: A
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If the MRP of labor decreases, labor:
a. demand will decrease. b. demand will increase. c. supply will increase. d. supply will decrease. e. demand and supply will be unaffected.
Pa and Pb represent the prices that citizens (a) and (b), the only two people in this nation, are willing to pay for additional units of a quantity (Qc) of the public good. Qs represents the quantity of the public good supplied by government at each of the collective prices.QcPaPbQs1$4$552344324342325121Refer to the above information. If only 1 unit of this public good is produced, then the marginal benefit is:
A. $4 and the marginal cost is $7. B. $3 and the marginal cost is $9. C. $9 and the marginal cost is $3. D. $6 and the marginal cost is $3.
If scalpers were to charge only face value for tickets to a sold-out event, there would be
A. a lower price in the market for scalped tickets than the equilibrium price. B. a scalped ticket available for every seat in the stadium. C. a higher price in the market for scalped tickets than the equilibrium price. D. a price in the market for scalped tickets equal to the equilibrium price.
When leisure is a normal good, the wage elasticity of labor supply is always positive.
Answer the following statement true (T) or false (F)