In the U.S., taxes on capital gains are computed using
a. nominal gains. This is one way by which higher inflation discourages saving.
b. nominal gains. This is one way by which higher inflation encourages saving.
c. real gains. This is one way by which higher inflation discourages saving.
d. real gains. This is one way by which higher inflation encourages saving.
a
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The Federal Reserve's primary function is to control the money supply
a. True b. False Indicate whether the statement is true or false
Social regulations come about because of
A) market failure B) government failure C) changes in the social contract D) rent-seeking by bureaucrats.
A monopolistic competitor that earns profits in the current period is likely to expect: a. a loss in the future due to diseconomies of scale
b. the entry of firms with similar yet differentiated products in the long run. c. higher profits in the future due to barriers to entry. d. entry of new firms with identical products.
The amount of compensation associated with the income effect of a price change is called:
A. a compensation variation. B. an income effect. C. consumer surplus. D. a subsidy.