For a perfectly competitive firm, which of the following is NOT true?
A) The average revenue curve, the demand and the marginal revenue curves are identical.
B) The total revenue curve begins at the origin and slopes upward as output increases.
C) The slope of the total revenue curve is equal to the product price.
D) The total revenue curve is horizontal.
Answer: D
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Marginal and average taxes are
A. calculated using the same methodology. B. not used in modern tax analysis. C. not calculated using the same methodology. D. all of these answer options are correct.
A price floor is:
A. a legal maximum price. B. a legal minimum price. C. a legal maximum quantity that can be sold at a particular price. D. a legal minimum quantity that can be sold at a particular price.
The marginal revenue product can be written as:
a. TR / P. b. w / Q. c. MP × P. d. MRP × P. e. w × L.
The main policy conclusion of the rational expectations theory is
a. fiscal policy lags are so long and variable that such policy is worthless, but monetary policy can stimulate output. b. monetary policy lags are so long and variable that such policy is worthless, but fiscal policy can stimulate output. c. both monetary and fiscal policy will affect real output if firms and households correctly anticipate the effects of changes in government policy. d. neither monetary nor fiscal policy will affect real output if firms and households correctly anticipate the effects of changes in government policy.