A union worker with a COLA in his contract does not have to worry about the value of his check eroding due to inflation. Why?
a. the amount is indexed to inflation
b. savers are helped by inflation
c. when inflation is greater than the fund's investment earnings, there will be positive gains
d. the rule of 72 says that as more people pay into the system, the interest earnings will be large enough to award bonuses to all those who draw SS
Answer: a. the amount is indexed to inflation
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The oil depletion formula discussed in the chapter uses "proven resources" in its calculation. Explain what these "proven resources" are with respect to known and unknown oil reserves, and economical and uneconomical oil extraction met
What will be an ideal response?
A profit maximizing single-price monopolist charges a price equal to
A) average total cost. B) marginal revenue. C) the highest price consumers are willing to pay for the profit maximizing quantity. D) the price necessary for the firm to earn a normal return on its investment.