The nominal interest rate is the sum of the real interest rate and the premium paid to the lender to offset the expected rate of inflation.
Answer the following statement true (T) or false (F)
True
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The supply curve of books (which are produced using paper made from trees) will shift to the left in response to
A. a decline in college tuition. B. an increase in home building. C. an increase in the supply of lumberjacks. D. an end to government regulations that limit timber harvesting in national forests.
The costs incurred even when no output is produced are called
A) fixed costs. B) variable costs. C) external costs. D) marginal costs.
According to the text, there are three ways the government can help increase the accumulation of knowledge capital. What are they?
A) encouraging the use of trade secrets, expanding student loan programs, and increasing the minimum wage B) reducing taxes on capital, increasing Social Security payments, and lowering the exchange rate C) increasing taxes on firms, eliminating patents, and increasing the minimum wage D) protecting intellectual property rights, subsidizing research and development, and subsidizing education
Why are there two plants run by one firm that produce large commercial aircraft and thousands of plants run by hundreds of firms that produce ready-mix concrete? Explain in terms of economies of scale
Please provide the best answer for the statement.