How does monopoly result in income transfers?
What will be an ideal response?
Monopoly transfers income from consumers to the owners of the monopoly. The reason is that monopolists charge a higher price and produce less output than a purely competitive firm with the same costs. A monopolist can obtain economic profits over time. These profits come at the expense of consumers and become income for stockholders of the monopolistic firm. These stockholders are most likely from upper-income groups. Thus, income is transferred from a group with generally average income (consumers) to a high-income group (monopoly stockholders).
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The unemployment rate is interpreted as the percentage of the
A. able-bodied population who are not working. B. labor force that are not employed. C. workforce that have been laid off. D. adult population who are unemployed.
What are the main arguments for and against Fed independence?
What will be an ideal response?
Cortez was one of the leading explorers from _____
a. England b. France c. Holland d. Portugal e. Spain
If banks switch from holding reserves to holding cash, the policy impact of a negative deposit rate would be:
A. expansionary. B. contractionary. C. indeterminate. D. negligible.