The government’s profit from printing currency is called
a) seignorage
b) arbitrage
c) the rate of exploitation
d) the inflation tax
e) the velocity of money
a) seignorage
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Relative to Al, Joe has ________ if Joe can produce a good at a lower opportunity cost than Al
A) a marginal benefit B) a comparative advantage C) more production efficiency D) a free lunch E) a comparative benefit
Screening is when someone takes action to:
A. reveal one's own private information. B. find out the opportunity cost of acquiring more information. C. reveal private information about someone else. D. None of these statements is true.
Verbally explain why a firm would maximize profits by producing output up to the point where MR = MC
Will a large quantity of bonds held in the Social Security Trust Fund make it easier to deal with the retirement of the baby boomers?
a. Yes; the federal government will be able to redeem these bonds in the future without raising taxes or increasing its borrowing. b. Yes; the interest on these bonds will provide the federal government with a stream of net revenue in the future. c. Yes, but only if the federal government holds these bonds until they mature. d. No; the federal government cannot redeem the bonds without raising revenues for their redemption from other sources.