How does a tax cut affect the expenditure schedule?
A. It causes movement to the left along the schedule.
B. It causes the schedule to shift upward.
C. It causes movement to the right along the schedule.
D. It causes the schedule to shift downward.
Answer: B
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A coffee shop sells a small cup of coffee at $3, while a large cup, which is twice as big, at $5. This is an example of
A) first-degree price discrimination. B) second-degree price discrimination. C) third-degree price discrimination. D) actual cost differences.
The opportunity costs associated with the use of resources owned by a firm are:
a. externalities. b. implicit costs. c. explicit costs. d. sunk costs.
determinant of a country's current productivity?
What will be an ideal response?
Which statement most accurately captures the state of money today?
A) Money today includes currency, bank deposits and checks. B) Money today includes currency and checks but not bank deposits. C) Money today includes bank deposits and currency but not checks. D) Money today includes bank deposits and checks but not currency. E) Money today includes checks and credit cards.