A decrease in marginal tax rates will cause ________ in investment and a ________ shift in AS.
A. a decrease; leftward
B. a decrease; rightward
C. an increase; leftward
D. an increase; rightward
Answer: D
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Beginning in 1965, the head of the Antitrust Division of the U.S. Department of Justice began to change antitrust policy. How did antitrust policy change?
A) For the first time horizontal mergers were allowed—with government approval—and vertical mergers were allowed without need for approval from the government. B) For the first time concentration ratios were used to evaluate the degree of competition in the industries of firms that proposed mergers. C) Proposed mergers no longer needed the approval of the Federal Trade Commission or the court system. D) The Division began to systematically consider the economic consequences of proposed mergers.
An example of third parties in the market of automobiles is
A) a pedestrian that is affected by the polluted air from automobiles. B) a producer of automobiles. C) a consumer of automobiles. D) None of the above belongs to third parties.
Sally would only agree to a second date with Andy if she sees him leave a generous tip for the waiter on their first dinner date. This is an example of a
a. Screening mechanism b. Signaling mechanism c. Way to waste money d. None of the above
The greater the product differentiation,
a. the more elastic a firm’s demand curve. b. the less elastic a firm’s demand curve. c. the less the price difference between competing firms. d. the closer to perfect competition.