Ignoring any supply-side effects, when taxes are hiked, real GDP ________ and the price level ________
A) increases; rises
B) decreases; rises
C) increases; falls
D) decreases; does not change
E) decreases; falls
E
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Refer to Table 17-1. The marginal product of the fourth unit of labor is
A) 300. B) 75. C) 60. D) 15.
When a firm is earning zero economic profits
A) accounting profit is zero. B) total revenue is greater than total cost. C) P = ATC. D) P is greater than ATC.
Suppose Larry's Lariats produces lassos in a factory, and uses nine feet of rope to make each lasso. The rope is put into a machine that automatically cuts it to the right length, then seals the ends to prevent fraying. The rope is then hand tied, dipped, and wound before being placed in a packaging machine to prepare it for retail sale. If Larry were to decrease the production of lassos, which of the following is true regarding the company's costs?
A. The variable costs of rope would drop to zero. B. The fixed cost of the rope cutting machine would stay the same. C. The fixed cost of the employee's wages would stay the same. D. None of these is true.
A production possibilities frontier is a graph that shows the combination of outputs that an economy should produce
a. True b. False Indicate whether the statement is true or false