You put money into an account and earn a real interest rate of 5 percent. Inflation is 2 percent, and your marginal tax rate is 35 percent. What is your after-tax real rate of interest?
a. 5.25 percent
b. 3.05 percent
c. 2.55 percent
d. 1.25 percent
c
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Refer to Figure 12-17. Which of the following statements is true?
A) The current market price is $3 but the firm will be able to increase the price in the future. B) The current market price is $3 but the price will fall in the long run as new firms enter the market. C) The current market price is $3 but the price will increase in the future as the market demand increases. D) The current market price is $3 but the price will fall in the long run as a result of a decrease in demand.
An economy has two workers, Jen and Rich. Every day they work, Jen can produce 2 TVs or 10 radios, and Rich can produce 4 TVs or 12 radios. What is the opportunity cost for Jen to produce one radio?
A. 1/5 TV B. 5 TVs C. 1/10 TV D. 10 TVs
Higher prices can discourage use/consumption, which in turn may better allocate scarce resources.
Answer the following statement true (T) or false (F)
In a monopoly market, the socially efficient quantity of output is typically higher than the profit-maximizing quantity of output for the monopolist
a. True b. False Indicate whether the statement is true or false