Suppose the nominal interest rate is 2% and the real interest rate is -3%. We can deduce that the rate of inflation is
A) 0%.
B) 2%.
C) 3%.
D) 5%.
D
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One of the advantages that corporations have as a business organization is that corporate profits are only taxed once.
Answer the following statement true (T) or false (F)
According to the Laffer curve, when the tax rate is 100 percent, tax revenue will be:
a. the same as it would be at a 50 percent tax rate. b. the same as it would be at a 20 percent tax rate. c. greater than it would be at a 50 percent tax rate. d. at the maximum value. e. 0.
A preference for either taxes or permits to regulate pollution is dependent on the relative shape of what two curves?
a. Total cost of damage curve and total cost of pollution reduction curve b. Marginal revenue of pollution control curve and marginal cost of damage curve c. Marginal cost of pollution reduction curve and marginal cost of damage curve d. Marginal benefit of pollution curve and marginal revenue of pollution curve e. Marginal utility of pollution curve and marginal cost of regulation
A profit maximizing monopolist will hire labor up to the point where
A) marginal revenue product equals the price of the product. B) marginal revenue product is greater than the wage rate. C) marginal revenue product equals than the wage rate. D) marginal revenue product is less than the wage rate.