Expenditures on (5) are considered economic investments
What will be an ideal response?
1) capital equipment
2) new plants
3) business software
4) inventories
5) machinery
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Over twenty years ago the city of Washington D.C. was facing a budgetary shortfall. In a plan to increase tax revenue the mayor and city council agreed to raise the excise tax on gasoline
Typically for goods like gasoline which are price inelastic this should have led to an increase in tax revenue. However, just the opposite happened – tax revenue plummeted! What could explain this seemingly paradoxical result?
An increase in the supply of capital, which is a complement to labor, will lead to
A) an increase in the quantity of labor demanded. B) a decrease in the demand for labor. C) an increase in the demand for labor. D) a decrease in the quantity of labor demanded.
Private goods are goods
A) that carry a price. B) for which price is greater than zero. C) for which the more one person has the less is available for someone else. D) that are produced by the government.
Rising labor productivity means that less labor is needed to produce the same level of output
a. True b. False Indicate whether the statement is true or false