If the nominal interest rate is 2 percent and the inflation rate is 4 percent, then the real rate of interest is

A number of economists have estimated the impact of unionization on workers' wages. Which of the following is one conclusion reached by these studies?

A) Holding constant the impact of other factors that affect wages, being in a union has no impact on a worker's wages. B) Being in a union increases a worker's wages by about 10 percent, holding constant other factors that influence wages. C) Union workers earn less than they would if they were not unionized. This is because of the impact of workers' strikes, during which union members do not receive wages. D) The share of national income received by workers has increased significantly over time; unions have been responsible for about one-half of the increase in workers' share of national income from the end of World War II to 2000.

A firm that can sell essentially the same product with the same quality under different brand names that have different perceived quality, the firm

A) has a moral hazard problem. B) creates noise in the market. C) creates an arbitrage opportunity. D) is engaging in unfair trading practices.