There will be long-run pressure on the price to fall whenever
A. P>ATC.
B. P
Answer: A
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What best describes what happens to the share of income spent on food as income increases?
a. The share increases. b. The share decreases. c. The share stays the same.
Consider the hypothetical supply and demand of Kidneys.
If the government allows the buying and selling of kidneys, what will be the resulting price and quantity of kidneys?
A. (0, 900)
B. (1200, 2000)
C. (1500, 900)
D. No kidneys would be exchanged.
The monetary rule is the view of the:
a. Keynesians that monetary policy is most important. b. Monetarists that monetary policy is most important. c. Classical economists that monetary policy is most important. d. Monetarists that the Fed should expand the money supply at a constant rate.
Which of the following can be classified as a regressive tax?
a. Federal corporate income tax. b. Federal personal income tax. c. Federal gasoline tax. d. All of these.