The tax cuts passed during the Reagan administration were designed primarily to:
a. boost savings among consumers
b. shift the aggregate demand curve rightward.
c. reduce the balance-of-payments deficit.
d. increase the supply of productive resources.
e. increase the tax base and include more tax payers.
d
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?There are two economically meaningful ways of slicing two-input production frontiers.
Answer the following statement true (T) or false (F)
In the Keynesian view,
a. both monetary and fiscal policy can affect income. b. monetary policy can be ineffective when money demand is less interest rate elastic. c. fiscal policy is a more reliable way to stimulate output during a recession. d. all of the above
Which of the following does not support the concept of an economic agent? (Check all that apply.)
A. Groups are considered as a single decision maker. B. All economic agents are individuals. C. Their decisions do not have an effect on the economy of a country. D. They make decisions by solving choice problems.
Profit maximization requires that
A. equal amounts of each input are employed. B. the amount of one input hired divided by the amount of another input hired equals the total costs of the first input hired divided by the total costs of the second input. C. the marginal factor cost of every input equals that input's marginal physical product. D. the marginal factor cost of every input equals that input's marginal revenue product.