A tax multiplier equal to ?4.30 would imply that a $100 tax increase would lead to a:
a. $430 decline in real GDP.
b. $430 increase in real GDP.
c. 4.3 percent increase in real GDP.
d. 4.3 percent decrease in real GDP.
e. 43 percent decrease in real GDP.
a
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Which of the following does NOT cause a shift in the supply curve for labor in an industry?
A) Worker tastes and preferences B) Population of the concerned region C) Opportunity costs faced by the workers D) Price of the final good that the labor is used to produce
Suppose the seller's opportunity cost of producing shirts is $12 and the buyer's valuation is $22 . If the seller gains $2 more than the buyer from this transaction, what is the price at which the good is exchanged between the two parties?
a. $17 b. $18 c. $19 d. $20
If the demand for a product increases, we would expect that price will initially ________, and eventually ________.
A. rise; fall B. rise; continue to rise C. fall; rise D. fall; continue to fall
If marginal revenue exceeds marginal cost, to increase its profit the firm will
A) decrease its output. B) increase its output. C) keep its output the same. D) shut down.