You are given the following information about the economy: the nominal interest rate = 8%; the real rate of interest = 6%.The inflation premium is
A. 6%.
B. 2%.
C. 14%.
D. 8%.
Answer: B
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The International Court of Justice (ICJ) is the primary international court, also referred to unofficially as
a. Nuremburg. b. the International Criminal Court. c. the Dispute Settlement Body. d. the World Court.
When the home country is small, how will an increase in a tariff protecting a home monopolist affect the home country's demand curve?
a. There will be an upward parallel shift in the demand curve. b. The demand curve will pivot upwards from its vertical intercept. c. There will be a downward parallel shift in the demand curve. d. The demand curve will pivot downwards from its vertical intercept.
Which statement is TRUE? Fixed costs
A) do NOT exist in the long run. B) depend on the firm's level of output. C) are zero if the firm is producing nothing. D) are the difference between total costs and average variable costs.
Government purchases that are counted as part of GDP can be less than the government's total budget because:
A. only the budget surplus or deficit is counted as part of GDP. B. government purchases are not counted as part of GDP. C. taxes are not counted as part of GDP. D. transfer payments are not counted as part of GDP.