Which of the following is an example of the menu costs of inflation?
a. Tito's Restaurant has to print new menus to update its prices compared to other prices in the economy
b. Beto sells stocks and earns a real capital gain of $50, but is taxed for the nominal capital gain of $75
c. During Bolivia's hyperinflation, workers rushed to immediately convert their wages from pesos to black-market dollars
d. The after-tax real interest rate is lower when inflation is higher
a
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The positive effect of having more potential volunteers resulting in a greater likelihood of a beneficial outcome is known as the
A) diffusion effect. B) externalizing effect. C) group dynamic effect. D) size effect.
Disadvantages faced by the South in fighting the Civil War include
a. an inadequate supply of free, military-aged males. b. limited industrial capacity. c. shortages of horses and mules. d. the lack of an effective administrative machinery for tax collection. e. All of the above.
In which of the following would the richest tenth of the population be most likely to receive the highest percentage of the country's income?
A. Namibia. B. The United States. C. Japan. D. The United Kingdom.
Refer to the table. If the current tax rate is 60 percent, supply-side economists would advocate:
A. lowering tax rates to 20 percent, or lower if possible.
B. lowering tax rates to 40 percent.
C. keeping tax rates at 60 percent.
D. raising tax rates to 80 percent.