In the long run, a tax placed on a perfectly competitive industry should have what effect on the entire market?
A. Not affect the total amount of the good sold.
B. Increase the total amount of the good sold.
C. Decrease the total amount of the good sold.
D. One cannot tell.
Answer: C
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One bag of coffee beans is sold for $7 to a cafe that uses it to brew coffee which it sells to customers for a total of $15. A second bag of coffee is sold directly to Joan for $7, who uses it to brew coffee for her family every morning
What is the contribution to GDP from the purchases of coffee beans and coffee? A) $14 B) $29 C) $15 D) $7 E) $22
When the marginal product of labor is greater than the average product of labor, the
A) marginal product of labor must be increasing as labor increases. B) average product of labor must be increasing as labor increases. C) total product must be increasing at an increasing rate as labor increases. D) None of the above answers is correct.
Why do many economists believe that money affects output? What is the empirical evidence in support of that belief?
What will be an ideal response?
Which of the following is true of the business cycle record of the United States?
a. Recessions have been lengthier during the last two decades than was true prior to 1980. b. Real GDP contracted throughout most of the 1950s. c. Real GDP in 2000 was approximately the same as 1950. d. Since 1950, the fluctuations in GDP have been less severe than before 1950.