The existence of inflation does which of the following?
A) reduces tax distortions
B) allows governments to benefit from seignorage
C) reduces shoe-leather costs
D) reduces the costs associated with money illusion
B
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Which of the following would be included in GDP?
a. Production of computers by IBM in Japan b. The value of a car. c. The commission on the sale of your house. d. The value of childcare provided at home by the child's mother.
The perfect competitor's demand curve is perfectly elastic
A. only in the short run. B. only in the long run. C. in both the short and the long run. D. in neither the short nor the long run.
The joining of firms that are producing or selling a similar product is
A. a vertical merger. B. competition by merger. C. a hostile takeover. D. a horizontal merger.
The city of Hope has a labor force of 1000. Twenty people lose their jobs each month and remain unemployed for exactly one month before finding jobs. On January 1, May 1, and September 1 of each year, 50 people lose their jobs for a period of four months before finding new jobs. What is the unemployment rate in any given month?
A. 2% B. 7% C. 3% D. 5%