If the real interest rate is 5 percent and the nominal interest rate is 2 percent, this implies an expected inflation rate of

Refer to the scenario above. Suppose you decide to buy a Toyota Corolla. You value the car for $10,000. You don't know it, but the car dealer values it for $8,500. Which of the following is true in this case?

A) There are no gains from trade. B) There are gains from trade. C) There are negative economies of scale. D) There are positive economies of scale.

After hiring a new employee, a manager finds that the total output has increased. When the manager hires another employee however, he realizes that although the total production has increased, the increment is less than the previous case. This is the result of:

a. diseconomies of scale. b. a general economic downturn. c. diminishing marginal returns. d. the lack of skills of the two new employees. e. constant returns to scale.