In the long run, an increase in the individual income tax rate with no change in the corporate profits tax may lead to ________ prices for the products of corporations and ________ prices for the products of partnerships and proprietorships.
A. lower; higher
B. higher; lower
C. higher; higher
D. lower; lower
Answer: A
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All but one of the following have been suggested by some economists as possible consequences of path dependency and switching costs. Which of the following is not a possible consequence of path dependency and switching costs?
A) diseconomies of scale B) market failure C) Consumers may get locked into using products with inferior technology. D) Government intervention may be necessary in affected markets in order to improve economic efficiency.
________ in the domestic interest rate causes the demand for domestic assets to increase and the domestic currency to ________, everything else held constant
A) An increase; appreciate B) An increase; depreciate C) A decrease; appreciate D) A decrease; depreciate
The short run is a period of time:
a. in which a firm uses at least one fixed input. b. that is long enough to permit changes in the firm's plant size. c. in which production occurs within one year. d. in which production occurs within six months.
A free rider is one who enjoys the benefits of a public good without paying for it.
Answer the following statement true (T) or false (F)