Lower inflation is usually accompanied by
a. lower nominal interest rates
b. lower real interest rates
c. higher nominal interest rates
d. higher real interest rates
e. zero real interest rates
D
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If Italy can produce grapes at a lower opportunity cost than any other nation, Italy is said to have a(n) ________ in the production of grapes
A) comparative disadvantage B) autarky C) comparative advantage D) absolute advantage
The term externalities refers to
A) consequences of action not taken into account in making decisions. B) social interactions associated with urban-industrial economies. C) the superficial consequences of decisions. D) the visible consequences of decisions.
Suppose some firms in a perfectly competitive market are incurring an economic loss. As a result,
A) all the firms will eventually incur an economic loss. B) some firms will leave the market and the price of the good will rise. C) some firms will leave the market and the remaining firms' quantity will decrease. D) the total market economic profit must equal $0.
If the marginal cost of producing the tenth unit of output is $3, and if the average total cost of producing the tenth unit of output is $2, then at ten units of output, average total cost is rising
a. True b. False Indicate whether the statement is true or false