Refer to the table below. If the price of labor declines from $3 to $2 per unit, then what is the least costly way of producing Zenias?
Suppose a firm can produce 70 units of a product, Zenia, by combining labor, land, capital, and entrepreneurial ability, as in the four alternative techniques shown in the table below. Assume further that the firm can hire labor at $3 per unit, land at $3 per unit, capital at $6 per unit, and entrepreneurship at $9 per unit.
A. A
B. B
C. C
D. D
Answer: B
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If expected inflation is constant and the nominal interest rate increases by 3.5 percentage points, then the real interest rate
a. increases by 3.5 percentage points. b. increases, but by less than 3.5 percentage points. c. decreases, but by less than 3.5 percentage points. d. decreases by 3.5 percentage points.
The wealth of most people declined as a result of the financial crisis of 2007-2009. As a result, which asset was most likely became a larger portion of their portfolio?
A) bonds B) stocks C) house D) checking account