In a competitive market economy firms will select the least-cost production technique because:
A. such choices will result in full employment of available resources.
B. to do so will maximize the firms' profits.
C. this will prevent new firms from entering the industry.
D. "dollar voting" by consumers mandates such a choice.
Ans: B. to do so will maximize the firms' profits.
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The figure above shows the relationship between the price of a dozen roses and the quantity of roses a florist can sell. The slope between points C and D equals
A) 8. B) 4. C) 2. D) 1. E) 12.
Discrimination has no impact on the total output of goods and services
Indicate whether the statement is true or false
Discretionary fiscal policy transpires when the government moves to alter ______.
a. stock and bond markets b. donations and volunteerism c. taxes and government purchases d. wages and profits
A theory of taxation that states that ________ is the ability-to-pay principle.
A. citizens should bear tax burdens in line with their ability to pay taxes B. taxpayers should contribute to the government in a greater proportion than the benefits they receive from public expenditures C. taxpayers should contribute to the government in a smaller proportion than the benefits they receive from public expenditures D. taxpayers should contribute to the government in proportion to the benefits they receive from public expenditures