If inflation is perfectly anticipated, benefits are indexed, and there are no restrictions on contracts, which group loses purchasing power because of inflation?
a. Borrowers, lenders and retirees
b. Only borrowers
c. Neither lenders, borrowers, nor retirees
d. Only lenders
e. Only retirees
C
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A firm is currently producing at a level where its MC = 10 and its MR = 5. We can conclude that this firm is
a. profit maximizing. b. under-producing. c. over-producing. d. no definite conclusion can be made about the firm's level of production.
A depreciation in Micromania's currency, the micro, occurs when the exchange rate changes from
a. 50 micros = $2 to 25 micros = $1 b. 100 micros = $2 to 200 micros = $1 c. $1 = 75 micros to $2 = 100 micros d. $3 = 75 micros to $1 = 25 micros e. $1 = 50 micros to $2 = 50 micros
The total amount of income in a society is independent of how income is distributed
a. True b. False Indicate whether the statement is true or false
Which of the following statements is true?
A) The main items that comprise indirect business taxes include excise taxes, income taxes, and property taxes. B) Capital consumption allowance is also known as depreciation. C) A sales tax is an example of an indirect business tax. D) b and c E) a, b, and c