You borrow $10,000 from a bank for one year at a nominal interest rate of 5%. If inflation over the year is 2%, what is the real interest rate you are paying?

Referring to Table 4.2, Box L should be filled with 

A. $30. B. $6.00. C. $8.00. D. $12.50.

Without specialization, individuals might spend time producing ________ goods.

A. unwanted B. low cost C. high cost D. general