If the real interest rate is 8 percent and the inflation rate is 2.5 percent, then the nominal interest rate is
A) 8 percent. B) 10.5 percent. C) 3.2 percent. D) 2.5 percent. E) 5.5 percent.
B
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How can external costs be eliminated by assigning property rights?
What will be an ideal response?
The main cost of a college education is
A) tuition if one goes to a private college and room and board if one goes to a public college. B) dependent upon whether one's parents pay for the college or not. C) the lack of practical experience from spending time in college. D) the opportunity cost of not working.
What is the difference between accounting profits and economic profits? Which of the two concepts is more appropriate for explaining decisions made by entrepreneurs? Explain
What will be an ideal response?
Susan quit her job as an attorney to teach elementary school. She had to give up her love of fine wine and now buys box wines. What type of elasticity is represented here?
a. demand elasticity b. supply elasticity c. income elasticity d. cross-price elasticity