The existence of inflation does which of the following?

A) reduces tax distortions
B) allows governments to benefit from seignorage
C) reduces shoe-leather costs
D) reduces the costs associated with money illusion

B

Economics

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A factor of production that can be used in any sector of an economy is a(an)

A) mobile factor. B) specific factor. C) variable factor. D) import-competing factor. E) export-competing factor.

Economics

There are only two firms in an industry with demand curves q1 = 30 - P and q2 = 30 - P. Both have no fixed costs and each has a marginal cost of 10 per unit produced. If they behave as profit-maximizing price takers, each produces 20 units and sells them at a price of 10 so that each firm makes zero economic profits. If they formed a cartel and split the production of the output evenly, the

profit-maximizing quantity produced by each firm is A) 5. B) 10. C) 15. D) 20.

Economics