If net taxes fall by $80 billion, we would expect
A) the government deficit to fall by $80 billion.
B) household saving to rise by $80 billion.
C) household saving to rise by less than $80 billion.
D) household saving to fall by more than $80 billion.
Answer: C
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The above figure shows the demand and cost curves for a firm in monopolistic competition. The firm makes the maximum profit when the marginal cost of last item produced equals
A) $5. B) $10. C) $15. D) $20.
An upper limit to the quantity of a good that may be produced in a specific period is called
A) production quota B) import quota C) price ceiling D) price floor
The idea that higher prices reduce the purchasing power of financial assets and lead to less consumption and more saving is known as the
a. real wealth effect b. interest rate effect c. foreign purchases effect d. income effect e. aggregate demand effect
Compared to 1968, in 2008 income distribution would be considered
A. much more equal. B. somewhat more equal. C. about as equal. D. Much less equal.