Other things equal, if the prices of a firm's variable inputs were to fall:
A. marginal cost, average variable cost, and average total cost would all fall.
B. one could not predict how unit costs of production would be affected.
C. marginal cost, average variable cost, and average fixed cost would all fall.
D. average variable cost would fall, but marginal cost would be unchanged.
Answer: A
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According to the traditional Keynesian approach, a tax cut raises aggregate demand because
A) a tax cut always results in a balanced budget. B) taxes are part of the C + I + G + X line. C) taxpayers anticipate a tax increase in the future. D) disposable income available to consumers increases.
In a fiduciary monetary system
A) coins get their value from the precious metals of which they are made. B) money gets its value from the confidence that the public has in its acceptability. C) paper currency does not have value, but balances in checking accounts do. D) checking account balances do not have value, but paper currency does.
The maturity date of a bond is:
a. the date on which the lender receives the coupon from the borrower. b. the date on which the borrower takes the loan. c. the date on which the bond is bought by an individual from the firm. d. the specified time at which the borrower repays the loan. e. the specified time at which the borrower sells the bond held by him to someone else.
Critics argue that a disadvantage of the Earned Income Tax Credit is that it does not effectively target the working poor because many recipients are the teenage children of middle-income families
a. True b. False Indicate whether the statement is true or false