A change in the expected rate of inflation from 3 percent to 5 percent will
a.increase the real interest rate by 2 percentage points.
b.decrease the real interest rate by 3 percentage points.
c.increase the nominal interest rate by 2 percentage points.
d.decrease the nominal interest rate by 2 percentage points.
132.Firm X competes for the monopoly right to produce and sell widgets by expending resources to lobby politicians. The government decides to award the monopoly right to the firm. Which of the following is false?
a.The resources used to affect the transfer are expended in a socially wasteful manner.
b.The resources used to affect the transfer are better used from society's point of view in the production of goods and services.
c.The resources used to affect the transfer are not used in a wasteful manner from the firm's point of view.
d.The rent the firm consequently earns is real economic rent.
e.None of the above; all of the above are true.
133.In economics, the word "interest" refers to the
a.return earned by capital as an input in the production process.
b.return earned by land as an input in the production process.
c.price for credit or loanable funds.
d.price consumers pay to use the money supply.
e.a and c
134.What does it mean if a woman has a positive rate of time preference?
a.She prefers to arrive early (instead of on time) to an employee interview.
b.She prefers to buy resources before they rise in price.
c.She prefers earlier availability of goods over later availability of goods.
d.She prefers "having more time" to "having less time."
e.none of the above
135.Jones has a high rate (of positive) time preference and Smith has a low rate (of positive) time preference. Which man is more likely to take out a loan to buy a car now?
a.Smith, because he prefers earlier availability of goods to later availability of goods.
b.Jones, because he prefers earlier availability of goods to later availability of goods.
c.Smith, because he prefers earlier availability of goods more than Smith prefers earlier availability of goods.
d.Jones, because he prefers earlier availability of goods more than Smith prefers earlier availability of goods.
e.There is not enough information to answer the question.
136.John is willing to give up 2 apples tomorrow to get one apple today, whereas Bill is willing to give up only 1.5 apples tomorrow to get one apple today. It follows that
a.John has a higher rate of time preference than Bill, because he is willing to give up more tomorrow to get something today.
b.Bill has a higher rate of time preference than John, because he is willing to give up less tomorrow to get something today.
c.if we factor in the price of apples, John and Bill (probably) have the same rate of time preference.
d.Bill has a lower rate of time preference than John, because he is willing to give up more tomorrow for something today.
e.John has a lower rate of time preference than John, because he is willing to give up more tomorrow to get something today.
137.There are two societies, A and B, that are alike in every way but one. In society A, people have a high rate of time preference, and in society B, people have a low rate of time preference. It follows that
a.the demand for consumption loans will probably be lower in A than B.
b.interest rates will be lower in B than A.
c.there will be more saving in A than B.
d.b and c
e.none of the above
138.What is a roundabout method of production?
a.It refers to an inefficient way of producing goods.
b.It refers to the production of capital goods that are used to enhance productive capabilities.
c.It refers to hiring more workers and using fewer capital goods.
d.It refers to producing more consumer goods and fewer capital goods.
e.none of the above
139.If roundabout methods of production did not ultimately __________, they would probably not be employed.
c.decrease interest rates
e.increase the number of persons working
140.If the demand for consumption loans rises, this could be the result of
a.the discovery of new roundabout methods of production.
b.a higher rate of time preference in society.
c.an increase in (people) saving.
d.a higher interest rate.
e.a and c
Consider the following two projects: Discount Rate Year 4 Year 3 Year 2 Year 1 Year 0 Cash Flow Cash Flow Cash Flow Cash Flow Cash Flow - 100 - 73 Project 0.16 N/A 60 50 ...Aug 16 2020
Suppose that the expected number of deaths due to bladder cancer for all workers at a tire plant on January 1, 1964 , over the next 20 years (1/1/64-12/31/83) based on US...Aug 02 2020
Rate of Return If State Occurs State of Economy Boom Normal Bust Probability of State of Economy .20 .50 .30 Stock B .38 Stock A .26 .10 .01 Stock C .50 .08 .06 -.20 -.40...Aug 16 2020
A _________________ system is a performance evaluation system that focuses on key behaviors that differentiate between doing a job effectively or ineffectively.32. A ____...Dec 19 2019
a. Describe the basic makeup of a ladder logic rung.b. How are the contacts and coil of a rung identified?c. When is the ladder rung considered TRUE, or as having logic c...Jul 14 2020
explain what you think it means to conduct yourself as a professional, not just generally but with specific reference to professionalism within the hr function >May 21 2020
A university Professor surveys 50 statistics students, 50 engineering students, 50 accounting students, and 50 management students regarding the new policy in the school...Apr 11 2020
Find the image of the circle |z-x-4i|=1 by the transformation w =(1+i)z >Aug 06 2020
The crude oil futures contract on the New York Mercantile Exchange covers 1,000 barrels of crude oil. The contract is quoted in dollars and cents per barrel, e.g., $27.42...Mar 29 2020
The value of organizational development is often overlooked in a fast-paced health care organization experiencing considerable change. How would you advocate its importan...May 20 2020
Welcome to MyCourseHelp Services, World's leading Academic solutions provider with Millions of Happy Students.