Assume you have a credit card balance of $2,000 at 15 percent and the inflation rate is 3 percent. What are the nominal and real interest rates?
A) 15 percent nominal and 12 percent real
B) 12 percent nominal and 15 percent real
C) 15 percent nominal and 3 percent real
D) 3 percent nominal and 12 percent real
E) 15 percent nominal and 18 percent real
A
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Which of the following types of business organization have limited liability? I. proprietorship II. partnership III. corporation
A) I, II only B) II, III only C) III only D) I, II, III
Which of the following statements is not correct?
a. A free rider is a person who benefits from something for which he or she does not have to pay. b. The creation of general knowledge is a public good. c. The Tragedy of the Commons illustrates the underuse of a common resource. d. A gasoline tax is an imperfect solution to the problem of traffic congestion on public roads.