Everything else constant, who is least likely to lose from unexpected inflation?
a. A retired person whose pension payments are fixed in dollars
b. A person with a large amount of money deposited in a savings account
c. A bank scheduled to receive fixed nominal mortgage payments
d. A homeowner scheduled to make fixed nominal mortgage payments
e. A consumer who spends extra time shopping for the lowest prices
D
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If a government wants to pursue an expansionary fiscal policy, then a tax cut of a certain size will be more expansionary when the
A. unemployment rate is low. B. economy's MPS is large. C. economy's MPC is large. D. economy's MPC is small.
In evaluating the degree of economic efficiency in a market, we can state that the size of the deadweight loss in a market will be smaller
A) the greater the difference between marginal cost and average revenue. B) the smaller the difference between marginal cost and price. C) the greater the difference between marginal cost and price. D) the smaller the difference between marginal cost and average total cost.
Four years after graduating from college you must decide if you want to go on as an accountant (your college major) or if you want to make a career change and become a singer. The cost of your education will matter for your decision
Indicate whether the statement is true or false
In a perfectly competitive market, when the price is below the minimum average total cost for all firms:
A. economic profits will be equal to zero. B. the price will eventually rise once enough firms have left the market. C. firms will likely enter the market. D. accounting profits will be positive.