If you expect the inflation rate to be 12 percent next year and a one-year bond has a yield to maturity of 7 percent, then the real interest rate on this bond is
A) -5 percent.
B) -2 percent.
C) 2 percent.
D) 12 percent.
A
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The widespread adoption of computers in the workplace has likely led to
A) an increase in labor productivity because computers are a capital good. B) a decrease in labor productivity because computers are a capital good. C) an increase in the supply of labor because people are needed to operate the computers. D) no change in the quantity of labor hours. E) a decrease in human capital because computers are physical capital.
Which of the following can create a monopoly? I. high prices II. public franchise III. patent IV. government license
A) I and II B) I and III C) I, II and III D) II, III and IV
The government wants to increase its tax revenue and plans to implement an additional sales tax. The government will raise more tax revenue if it taxes a good with an ________ rather than a good with an ________
A) inelastic demand; elastic demand B) elastic demand; inelastic demand C) elastic supply; inelastic supply D) None of the above answers is correct.
Archibald's Tattoos is a perfectly competitive firm. The firm's costs are shown in the table above. If the market price of a tattoo is $17.50, what is the firm's economic profit?
A) zero B) $2.50 per hour C) $12.50 per hour D) -$10.00 per hour