Which of the following is correct?
a. Nominal and real interest rates always move together.
b. Nominal and real interest rates never move together.
c. Nominal and real interest rates do not always move together.
d. Nominal and real interest rates always move in opposite directions.
c
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Compared to setting a single price, if a firm can price discriminate it
A) makes a larger economic profit. B) makes a lower economic profit. C) makes zero economic profit. D) has no change in its economic profit from when it set a single price. E) might increase, decrease, or not change its economic profit depending on whether as a single-price monopoly its marginal revenue curve was above, below, or the same as its demand curve.
If the government wanted to efficiently limit the emission of carbon monoxide by all firms to exactly 4 million tons it could
A) issue rights to pollute worth 4 million tons and let the firms trade those rights in a market. B) appeal to firms' environmental conscience to pollute less. C) subsidize production. D) rely on the Coase Theorem.
Which of the following does not hinder economic development?
a. Lack of education b. Poor agricultural productivity c. Low investment in human capital d. Lack of technology e. Good nutrition
If U.S. prices increase relative to the rest of the world, we would expect:
A. imports to increase and net exports to increase. B. exports to decrease and net exports to decrease. C. imports to increase and net exports to increase. D. exports to decrease and net exports to increase.