In the long run, an increase in the individual income tax rate with no change in the corporate profits tax will lead to ________ profits in the corporate sector and ________ profits in the noncorporate sector.
A. higher; higher
B. lower; lower
C. higher; lower
D. lower; higher
Answer: A
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"Last October, due to an early frost, the price of a pumpkin increased by 10 percent compared to the price in the previous Halloween season. As a result, the quantity demanded county-wide decreased from 2 million to 1.5 million"
Based on this statement, it is certain that the A) demand curve for Halloween costumes shifted leftward. B) price elasticity of demand for pumpkins decreased from its value in previous years. C) demand curve for pumpkins shifted leftward. D) total revenue from the sale of pumpkins decreased.
________ occurs when a foreign firm sells its exports at a lower price than it costs to produce the goods
A) Dumping B) Comparative advantage C) Learning-by-doing D) A tariff
When a firm has a monopoly in a market and also perfectly price discriminates, total welfare
A) is maximized. B) is lower than in a perfectly competitive market. C) is higher than in a perfectly competitive market. D) is minimized.
In the U.S. a digital camera costs $200 . The same camera in London sells for 90 pounds. If the exchange rate were .50 pounds per dollar, then which of the following would be correct?
a. The real exchange rate is greater than 1 . A person in London with $200 could exchange them for pounds and have more than enough to buy the camera there. b. The real exchange rate is greater than 1 . A person in London with $200 could exchange them for pounds but then wouldn't have enough to buy the camera there. c. The real exchange rate is less than 1 . A person in London with $200 could exchange them for pounds and have more than enough to buy the camera there. d. The real exchange rate is less than 1 . A person in London with $200 could exchange them for pounds but then wouldn't have enough to buy the camera.