Supply-siders believe that
A. Tax rebates directly affect the supply side of the economy.
B. Tax rebates shift the Phillips curve to the left.
C. Tax rebates provide greater incentives for work, production, and investment.
D. Tax rebates have no effect on work effort.
Answer: D
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Assuming all else equal, the demand curve for reserves in an economy shifts to the left. Which of the following could be a likely reason for this shift?
A) An increase in the federal funds rate B) A decrease in the federal funds rate C) Rapid contraction of the economy D) Rapid expansion of the economy
Explain how collusion makes firms better off. Given the incentives to collude, briefly explain why every industry does not become a cartel
What will be an ideal response?
A monopolist with constant average and marginal cost equal to 8 (AC = MC = 8) faces demand Q = 100 - P, implying that its marginal revenue is MR = 100 - 2Q. Its profit maximizing quantity is
a. 8 b. 46 c. 50 d. 92
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What will be an ideal response?