In 2008, inflation exceeded expected inflation. In 2009, expected inflation exceeded inflation
Therefore the real interest rate was ________ than the expected real interest rate in 2008 and the real interest rate was ________ than the expected real interest rate in 2009. A) less; less
B) less; greater
C) greater; less
D) greater; greater
B
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Company towns are often decried as monopsonists. Why was it unlikely that another employer would move into a company town?
A) The marginal workers available in the company town had low marginal revenue product. B) The existing monopsonist had a first-mover advantage. C) The marginal workers available in the company town would demand a wage higher than that obtained at the existing monopsonist. D) Any of the above.
Define the following terms and explain their importance to the study of economics
a. principle of marginal productivity b. marginal physical product c. marginal revenue product d. derived demand e. economic rent