Which one of the following is TRUE?
A. The real rate of interest is the nominal rate plus the anticipated rate of inflation.
B. Increases in anticipated inflation increase the real interest rate.
C. The nominal rate of interest is the real rate plus the anticipated rate of inflation.
D. Increases in the CPI increase the real interest rate.
Answer: C
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Refer to Figure 11-17. Assume that production isoquants are convex. Total cost and output produced must increase for each of the following movements except one. Which movement is the exception?
A) point a to point b B) point b to point c C) point b to point d D) point a to point c
Direct transfer programs are generally less efficient and less politically acceptable than subsidy programs
a. True b. False
Which of the following is true under monopolistic competition in the short run?
A. P > MC. B. Profits are always zero. C. P = MR. D. All of the choices are true in monopolistic competition.
Average total cost is minimized at a higher level of output than average variable cost.
Answer the following statement true (T) or false (F)