Use the following graph to answer the next question.
Which of the following factors will shift AS1 to AS3?
A. A decrease in household indebtedness
B. An increase in productivity
C. A decrease in business taxes
D. An increase in input prices
Answer: D
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Under a progressive income tax system, the marginal income tax rate paid by taxpayers
A) declines as their incomes increase. B) rises as their incomes increase. C) is unchanged as their incomes increase. D) is unrelated to their incomes.
Which of the following statements is true?
a. Economic profit equals accounting profit minus implicit costs. b. The short run is any period of time in which there is at least one fixed input. c. A fixed input is any resource for which the quantity cannot change during the period under consideration. d. In the long run there are no fixed costs. e. All of these.
If marginal product increases with an increase in the variable input, the marginal cost must also increase as more units of the input are hired
a. True b. False Indicate whether the statement is true or false
In a perfectly competitive market, a given short-run equilibrium cannot persist into the long run unless the firms are earning (suffering)
a. above-normal profits b. below-normal profits c. economic losses d. economic profits e. just enough profit to cover all the owners' opportunity costs