How was the practice of clipping coins during feudalism contributing to inflation? Who benefited from this inflation?
What will be an ideal response?
As peasants paid their taxes in gold coin, the prince would clip off some of the coin and use the clipping to mint new coins. The additional coins increase the money supply, but the output in the economy was essentially constant. The price level rose because there was “too much money chasing too few goods.” In this case, the inflation benefited the issuers of the coin (the feudal lords) and hurt the peasants.
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Some people see the government as being more heavily involved in taking sides than in serving the common interest.
Answer the following statement true (T) or false (F)
Which statement is false?
A. The first trustbusters were Presidents Teddy Roosevelt and William Howard Taft. B. Labor unions became exempt from antitrust enforcement under the FTC Act. C. The Sherman Act stated that "every contract, combination in the form of trust or otherwise, in restraint of commerce among the several states, or with foreign nations, is hereby declared illegal." D. The Supreme Court's rule of reason was applied from 1911 to 1945.
A monopoly firm can sell its fourth unit of output for a price of $250. To sell more than five units, it must expect to receive a price:
A. equal to $250. B. greater than $250. C. less than $250. D. equal to $340.
For complementary goods, the coefficient of cross-elasticity of demand is:
A. negative. B. greater than one. C. positive. D. near zero.