The shoe leather costs of inflation include all of the following except:
A. the extra costs incurred to avoid holding cash.
B. the installation of a new cash management system.
C. the cost of more frequent trips to the bank.
D. the lost purchasing power of cash.
Answer: D
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The oligopolistic industry is not allocatively efficient because
A. the industry produces too little of the good. B. the industry produces at the lowest marginal cost. C. the industry produces at the lowest average total cost. D. the industry produces too much of the good.
The use of a property tax to fund public schools is an example of _____
a. the benefit principle at work b. the ability-to-pay principle at work c. a compromise between the benefit and ability-to-pay principles d. the Ramsey rule at work
Refer to the graph shown. Holding cost conditions constant, if the monopolistically competitive firm represented were suddenly to find itself in a perfectly competitive market, the long-run equilibrium price would adjust to:
A. $6. B. $8. C. $4. D. $7.
The ________ specializes in making long-term loans for capital investment projects that do NOT have private financial support.
A. European Central Bank B. Federal Reserve Bank C. International Monetary Fund D. World Bank