La Dila and Swiss Pro are the only two firms in an industry. The firms charge equal prices for their products, which are perfect substitutes. La Dila decides to lower its price slightly. Swiss Pro responds by cutting its price further
This price cutting will continue as long as each firm's ________. A) price is lower than marginal cost
B) price is higher than marginal cost
C) price is higher than zero
D) price is higher than the average fixed cost
B
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The self-correcting tendency of the economy means that falling inflation eventually eliminates:
A. exogenous spending. B. recessionary gaps. C. expansionary gaps. D. unemployment.
The growth rate of real GDP equals
A) [(real GDP in previous year - real GDP in current year) ÷ real GDP in previous year] × 100. B) [(real GDP in current year - real GDP in previous year) ÷ real GDP in previous year] × 100. C) [(employment in the current year - employment in previous year)/employment in previous year] × 100. D) (real GDP in current year - real GDP in previous year) × 100. E) [(real GDP in current year - real GDP in previous year) ÷ real GDP in current year] × 100.
Refer to Figure 3-4. At a price of $25, how many units will be sold?
A) 400 B) 500 C) 600 D) 800
A family that earns $20,000 a year pays $4,000 a year in payroll taxes. A family that earns $40,000 a year pays $8,000 a year in payroll taxes. The payroll tax is a ________ tax.
A. progressive B. regressive C. proportional D. benefits-received