Which costs of inflation could the government reduce without reducing inflation?
a. shoeleather and menu costs
b. menu costs and relative price variability
c. unintended changes in tax liabilities and arbitrary redistributions of wealth
d. none of the above is correct.
c
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Laws that make it difficult to start a new business lead to a
A) high rate of economic growth. B) low rate of economic growth. C) more political freedom. D) laissez-faire.
The demand curve for the product of a monopolistically competitive firm
A) is perfectly elastic. B) is unitary elastic. C) is downward sloping. D) is perfectly inelastic.
Rolnick and Weber point out that a bimetallic standard will not exhibit Gresham's Law if:
a. people are willing to use coins at their market values. b. people are willing to use coins at their face values. c. the government regulates the quantity of each type of coin in circulation. d. paper money circulates along with minted coins.
The pricing system has a failure built into it when externalities exist
a. True b. False Indicate whether the statement is true or false