Which of the following is an implicit cost? i. wages paid to workers ii. the normal profit iii. the electric bill

If inflation is correctly anticipated, those who buy government bonds will:

A. suffer losses because they will be compensated by lower interest payments. B. suffer losses regardless of inflation because interest paid on government bonds is set by Congress. C. not suffer losses because they will be compensated by higher interest payments. D. not suffer losses because inflation does not affect the purchasing power.

All of the following are reasons a government might choose to protect monopoly rights in an industry except:

A. because it is in the public's interest to do so. B. to encourage innovation. C. to increase consumer surplus beyond what is achieved through competition. D. to benefit insiders.