If an economy produces final output worth $5 trillion, then the aggregate income generated by that production:
a. will be $5 trillion
b. will be more than $5 trillion.
c. will be $5 trillion minus taxes.
d. will be less than $5 trillion.
e. will be $5 trillion plus transaction costs.
a
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Consider voter preferences over a public good y that is being funded by a proportional income tax. a. Illustrate how this might lead to single peaked voter preferences. b. Suppose there exists a privately available good x that is substitute for y. How does this introduce non-single peakedness? c. Now suppose x is relatively complementary to y. What would you expect to happen to voter preferences as this complementarity gets stronger?
What will be an ideal response?
In the employment of any resource, a firm should
A) equate marginal revenue product with the cost of the additional resource. B) hire each input unit that adds more to revenue than it adds to costs. C) hire each input unit provided its marginal physical product is greater than zero. D) A and B are both correct.
Capital can be treated as a free resource
Indicate whether the statement is true or false
A change in price changes the quantity demanded and is represented by a movement along the demand curve.
Answer the following statement true (T) or false (F)