A 50 percent tax on the profits of a monopolist will
A. be totally shifted to the consumer.
B. raise price and lower quantity.
C. cause no change in profit-maximizing price and quantity.
D. change price but not quantity.
Answer: C
Economics
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The natural unemployment rate is higher if
A) many of the new jobs created require skills possessed by the available labor. B) there are fewer two-income households. C) unemployment benefits become more generous. D) efficiency wages are lower. E) there is a decrease in the working-age population.
Economics
According to the economic way of thinking, "money" is defined as
A) anything backed by gold. B) anything backed by some other commodity. C) anything used as a general medium of exchange. D) anything the government declares to be legal tender.
Economics