Money and income are used interchangeably by noneconomists but mean different things
a. True
b. False
Indicate whether the statement is true or false
True
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Refer to Figure 13-1. Ceteris paribus, a decrease in personal income taxes would be represented by a movement from
A) AD1 to AD2. B) AD2 to AD1. C) point A to point B. D) point B to point A.
When a firm is at its short-run break-even point
A) economic profits are positive. B) economic profits equal zero and the firm should shut down. C) economic profits equal zero and the firm is earning a nominal rate of return on investment. D) economic profits are negative but the firm should continue to produce because accounting profits are positive.
We say that a firm is vertically integrated if
A. it centralizes all its output decisions but decentralizes its pricing decisions. B. it decentralizes all its input purchases but centralizes its decisions on output. C. it develops differentiated products that command price premiums. D. it makes some of its own inputs.
Once voting preferences become more complicated than those assumed by the median-voter theorem:
A. the policies preferred by the average voter become more important. B. the way in which votes are cast becomes important. C. economists cannot analyze voting preferences successfully. D. the politicians stay more extreme in their views.