If the expected rate of inflation is zero, the real interest rate must

Assume that a comparable worth law is passed that determines that kindergarten teachers and bricklayers have comparable jobs; therefore, workers in both of these occupations should be paid the same wages

Assume that prior to the law, bricklayers were paid a higher wage than kindergarten teachers. Which of the following is the most likely result of the comparable worth law? A) There will be surplus in the market for bricklayers and a shortage in the market for kindergarten teachers. B) Some former bricklayers will become kindergarten teachers and some former kindergarten teachers will become bricklayers. C) The equilibrium wage will be the same for kindergarten teachers and bricklayers. D) There will be a shortage in the market for bricklayers and a surplus in the market for kindergarten teachers.

The owner of a perfectly competitive firm is currently earning an economic profit of zero. This owner

A) should shut down since profits of zero are not good. B) should raise the price of the product to increase profits. C) is covering all of his fixed costs. D) will continue producing in the short-run but will shut down in the long run if profits do not increase.