Refer to Scenario 1-2. Using marginal analysis terminology, what is another economic term for the incremental cost of producing the last 500 cigars?
A) explicit cost B) marginal cost
C) operating cost D) Any of the above terms are correct.
B
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An increase in net exports will have a greater effect on equilibrium real GDP if the
A. marginal propensity to consume is smaller. B. average propensity to consume is larger. C. marginal propensity to save is larger. D. marginal propensity to save is smaller.
Attempts to influence the law for your own private economic advantage is called
A) tax imposition. B) subsidizing. C) rent seeking. D) creating a deadweight loss.
In the short run, a tax on economic profits can be shifted.
A. True B. False C. Uncertain
If a nation is going to achieve its full potential, it must have
A) a low rate of savings and a high rate of current consumption. B) a mechanism to attract savings and channel them into productive investment projects. C) low real interest rates. D) a central planning agency to allocate investment funds.