An efficient allocation of resources requires that a product’s price equals its average cost.
Answer the following statement true (T) or false (F)
False
You might also like to view...
An increase in the marginal tax rate
A) decreases the expenditure multiplier but cannot make it negative. B) has no effect on the expenditure multiplier. C) can either increase or decrease the expenditure multiplier. D) increases the expenditure multiplier. E) decreases the expenditure multiplier and can make it negative.
Which of the following statements is true?
a. All people in poverty are on welfare. b. Unemployment compensation is an example of an in-kind transfer. c. Temporary Assistance to Needy Families (TANF) is an example of a cash payment made by government to the impoverished. d. After cash assistance and in-kind transfers are considered the distribution of income in the United States is more unequal. e. All of these.
The more the short-run output exceeds an economy's potential, _____
Fill in the blank(s) with the appropriate word(s).
If the price is reduced from $100 to $80 in Figure 20.1, ceteris paribus,
A. Total revenue will decrease. B. Total revenue will increase. C. Quantity demanded will decrease. D. Demand will increase.