Decrease in personal income taxes will ________ the expenditure curve:
A) decrease.
B) increase.
C) not change.
D) none of the above.
B
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Economists are critical of monopoly because
A) monopolists can earn long-run economic profit. B) monopolists can create a deadweight loss. C) the demand for the monopolist's product is the market demand curve. D) economies of scope result in lower average costs.
If the long-run market supply curve is perfectly elastic, a fall in demand will cause the final equilibrium to be at:
A. the same price and the same output. B. a lower price and a lower output. C. a lower price but the same output. D. the same price but a lower output.
Exhibit 21-5 International currency markets
?
Exhibit 21-5 displays the international currency market for yen in terms of dollars and dollars in terms of yen. The supply curve in graph 15-5(A) is determined by:
A. U.S. citizens attempting to purchase Japanese-made goods. B. Japanese attempting to purchase U.S.-made goods. C. U.S. businesses attempting to sell to the Japanese. D. Japanese businesses attempting to sell to the U.S.
Which of the following is a political function of government but is NOT a central economic function?
A. determining who has a right to vote B. providing a legal system to adjudicate property rights C. redistributing income from some individuals to others D. determining government-sponsored and government-inhibited goods