When an economy's actual output is greater than its potential at some point in time, we say that it is experiencing:
A. a negative output gap.
B. deflation.
C. a positive output gap.
D. inflation.
Answer: C
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For spring break, Melanie will either stay home or go to Daytona Beach. At home, Melanie pays $10 per day for food and earns $90 a day at her job. At Daytona Beach, Melanie will stay with friends and so has no lodging cost
She will pay $20 per day for food. In terms of dollars, Melanie's opportunity cost per day of going to Daytona Beach is how much?
You interview with an athletic footwear manufacturer that has annual advertising expenditures of $32 million and total sales revenue of $100 million, and the firm selects the profit maximizing level of advertising expenditures
If the advertising elasticity of demand is 0.4, then you know that "Rule of Thumb for Advertising" implies that the demand for the firm's products is: A) inelastic. B) unit elastic. C) elastic. D) zero.
Which of the following is most important for the achievement of higher income levels and living standards?
A) an increase in total employment B) restriction of imports that expand employment in the protected industries C) production of additional goods and services that people value highly relative to the cost of their production D) increases in government spending that create jobs
Tax incidence refers to
A) determining who sends the taxes into the government. B) the tendency of some people to avoid paying taxes at all. C) the distribution of tax burdens among groups, or who really pays a tax. D) determining the marginal tax rate applied to any increase in income.