Exports have the same effect on the current size of GDP as:
A. imports.
B. investment.
C. taxes.
D. saving.
B. investment.
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What is meant by "tax incidence"?
What will be an ideal response?
Which of the following is most likely to lead to an economic contraction?
a. A decrease in the average price level b. An increase in aggregate supply c. A decrease in aggregate demand d. A decrease in taxes e. An increase in transaction demand for money
Which one of the following statements best describes a price ceiling?
a. A price ceiling causes demand to change. b. A price ceiling causes supply to change. c. A price ceiling keeps a price from rising above a certain level. d. A price ceiling keeps a price from falling below a certain level.
What is defined as the ability of a firm to earn high profits by raising and keeping the prices of its products substantially above the levels at which those products would be priced in competitive markets?
a. Economies of scope b. Tacit collusion c. Monopoly power d. Perfect competition