Which of the following is considered a benefit of inflation?
A) the option of a negative real interest rate
B) money illusion
C) seignorage
D) all of the above
E) none of the above
D
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Which of the following statements is true?
A) Technological innovation can cause unemployment in a country as a whole. B) Technological innovation always complements labor. C) Technological innovation can cause unemployment in a single industry. D) Technological innovation always substitutes labor.
A regressive income tax is defined as a tax for which
A) total taxes paid increase with the level of income. B) total taxes paid are independent of the level of income. C) the average tax rate increases with the level of income. D) the average tax rate decreases with the level of income.
To maximize joint profits, a cartel must determine the level of output at which:
A) joint marginal revenue equals the marginal cost of the largest member of the cartel. B) marginal revenue equals joint marginal cost. C) the horizontally sum of the members marginal cost curves is at a minimum. D) joint marginal revenue equals the marginal cost of the smallest member of the cartel.
A right-to-work law makes it illegal
A) to prevent union members from working in any firm. B) to fire a worker who has joined a union or who tries to organize a union at any firm. C) to inquire whether a prospective employee is a member of a union or not. D) for union membership to be a requirement for continued employment in any firm.