After-tax income is much less equally distributed than before-tax income.

What is the "most efficient capacity" for the perfectly competitive firm?

A) The plant size at which LRAC is at its minimum. B) The plant size at which any of the SRATC curves are tangent to the LRAC curve. C) The plant size at which MR = MC. D) The plant size for which Price = AR.

For this question, assume that expected inflation is equal to the nominal interest rate. In this situation, which of the following is correct?

A) The real interest rate is negative. B) The real interest rate is positive. C) The real interest rate is higher than the nominal interest rate. D) The real interest rate is zero.