The costs of inflation are
a. shoeleather costs and menu costs
b. arbitrary redistributions of wealth.
c. increased variability of relative prices.
d. All of the above.
d
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Make use of the quantity equation to answer the following problem. If the Fed increases the money supply by 6%, economic growth is 2%, and inflation is 2%, what is happening to the velocity of money? Be specific
What will be an ideal response?
In the resource market:
A. businesses borrow financial capital from households. B. businesses sell services to households. C. households sell resources to businesses. D. firms sell raw materials to households.
An industry which has a 4-firm concentration ratio near 100 would best be described as
A. oligopoly, or a monopoly, depending on the size of the biggest firm. B. a monopoly. C. perfect competition. D. monopolistic competition.
A manager of a firm with market power faces the marginal revenue product and average revenue product curves shown below. The firm incurs weekly fixed costs of $1,800. The firm employs a single variable input, labor, which costs $600 per worker each week.
Given the above, the maximum profit the firm can earn is ________.
A. $3,000 per week. B. -$1,800 per week. C. $4,800 per week. D. $1,800 per week. E. $2,400 per week.