Fundamentally, economics deals with

A business incurs the following costs per unit: Labor - $5/unit; Materials $3/unit and rent - $5000/month. If the firm produces 100 . units a month, the total fixed costs equals

a. $5,000 b. $8,000 c. $13,000 d. $3,000

The country of Solidia is politically very stable and has a long tradition of respecting property rights. If several other countries suddenly became politically unstable, we would expect Solidia's

a. real interest rate to rise. b. real exchange rate to rise. c. net exports to rise. d. None of the above is likely.