Maude is complaining about how much she pays in taxes now that the economy is finally doing really well. Even though she's in the same tax bracket as she was last year, she's paying $500 more in taxes this year, just because she earned more overtime pay this year. Maude's increased tax payment to the government is an example of:
A. expansionary fiscal policy.
B. contractionary fiscal policy.
C. discretionary fiscal policy.
D. automatic stabilizers.
D. automatic stabilizers.
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An investor who is considering hedging by selling Treasury futures can also hedge by:
A) buying Treasury put options B) selling Treasury put options C) buying Treasury call options D) buying European Treasury options
Suppose a single firm supplies all the ceramic windlasses in the U.S. The demand curve that firm faces is
a. elastic everywhere b. unit elastic everywhere c. inelastic everywhere d. perfectly inelastic everywhere e. elastic at the profit-maximizing quantity
Capitalism
What will be an ideal response?
Which of the following best describes why a perfectly competitive firm will sometimes continue producing in the short run even if it incurs a loss?
A. As long as price exceeds average variable cost, the loss from producing will be smaller than the loss from shutting down, which is equal to the amount of total fixed costs. B. Short-run losses turn into long-run profits when there is entry into the market. C. A perfectly competitive firm should never produce if it incurs a loss because it is unable to influence the market price. D. If price exceeds average total cost, the loss from covering the fixed costs will be smaller than the loss from covering the variable costs.