In a market economy, individuals have a strong incentive to develop their skills and provide others with resources, goods, and services that they value because these activities generally
a. improve the overall efficiency of the economy.
b. increase aggregate output.
c. lead to a higher personal income.
d. provide additional tax revenue for the government.
C
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Assuming that the demand for a good has increased and the supply of a good has decreased by the same amount, then: a. The change in price is determinate but the change in quantity is indeterminate. b. The change in quantity is determinate but the change in price is indeterminate. c. Both the change in price and the change in quantity will be indeterminate
d. Neither the change in price nor the change in quantity will be indeterminate.
Other things constant, a decrease in resource prices will lead to
a. reduced profits and a reduction in short-run aggregate supply. b. increased profits and a reduction in short-run aggregate supply. c. reduced profits and an increase in short-run aggregate supply. d. increased profits and an increase in short-run aggregate supply.
The marginal tax rate is equal to the
A) total amount of a person's tax payment divided by the total amount of the person's taxable income. B) total amount of a person's tax payment divided by the change in the person's taxable income. C) change in the person's tax payment divided by the total amount of the person's taxable income. D) change in the person's tax payment divided by the change in the person's taxable income.
Table 35.1CountryTons of SoybeansComputerChina100300United States150750Based on the information in Table 35.1, assume China and the United States have the same amount of resources with which to produce soybeans and computers and they produce no other goods. The opportunity cost of producing 1 computer in China is
A. 1/3 of a ton of soybeans. B. 3 tons of soybeans. C. 4 tons of soybeans. D. 1/4 of a ton of soybeans.