If the government were to restrict consumption to the efficient level in a market where a negative externality is present, the market outcome:
A. would not be efficient.
B. would then be efficient.
C. would be equitable.
D. None of these statements is necessarily true.
A. would not be efficient.
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Total expenditure equals total income
A) if firms do not save for future investment. B) if firms earn zero profit. C) because firms pay out everything they receive as income to the factors of production. D) only if net taxes equals government expenditures on goods and services. E) only if firms sell all the goods they produce in a given time period.
The more time people have to adjust to a price change:
A. the less elastic their demand will be. B. will not affect the elasticity of their response unless it is a luxury good. C. the more elastic their demand will be. D. will not affect the elasticity of their response unless the good is a necessity.
If autonomous consumption is greater than zero and the marginal propensity to consume is greater than zero, but less than one, the consumption function will first be below and then above the 45 degree line
a. True b. False Indicate whether the statement is true or false
The labor supply curve shows how many workers are willing to work
A. at any given wage. B. in order to maximize the firm's profit. C. at the minimum wage. D. at any given time. E. in a particular industry.