Given a nominal interest rate of 6 percent, in which of the following cases would you earn the lowest after-tax real rate of interest?
a. Inflation is 4 percent; the tax rate is 5 percent.
b. Inflation is 3 percent; the tax rate is 20 percent.
c. Inflation is 2 percent; the tax rate is 30 percent.
d. The after-tax real interest rate is the same for all of the above.
a
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One way a government might protect monopoly rights is by:
A. granting a patent. B. heavily taxing alcohol and cigarettes. C. running unsubsidized state-owned enterprises that compete with private firms. D. All of these are ways the government protects monopoly rights.
In order to successfully increase net revenue by charging buyers different prices, a seller must
What will be an ideal response?
To maximize profit, an unregulated natural monopoly will produce at a level where:
A. marginal revenue is greater than marginal cost. B. marginal revenue is greater than average revenue. C. marginal revenue is less than marginal cost. D. marginal revenue is equal to marginal cost.
The last American niobium mine closed in 1959, and all U.S. niobium is now imported from other countries. This is
A. good for the United States because it is always better to import raw materials from other countries and export finished goods. B. bad for the United States because the niobium miners were put out of work. C. good for the United States because the resources used to mine niobium are freed to do something for which the United States has a comparative advantage. D. bad for the United States because the United States must give money to other countries in order to obtain niobium.