In Figure 3-7 above, when autonomous planned spending is $250, the equilibrium income level is
A) $1000.
B) $1250.
C) $1500.
D) $2500.
B
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In the alcohol industry, both wine and spirits are considered to be substitutes for beer
Indicate whether the statement is true or false
In the early 1980s, which of the following countries had a marginal tax rate of about 80 percent?
a. United States b. Canada c. Japan d. Sweden
Answer the following statements true (T) or false (F)
1. The building of a new factory by a corporation would be an example of increasing the infrastructure in a developing nation. 2. Developing nations tend to have a large entrepreneurial class but not sufficient capital investment. 3. Land reform (or the reform of land ownership) is a relatively minor institutional obstacle to economic growth in many developing countries. 4. The vicious circle of poverty is based on the connections between low income, low saving, low investment, and low productivity. 5. The vicious circle of poverty implies that there is no way to break the circle; the poor nations will always remain poor.
If a profit-maximizing competitive firm ________ compensate society for a negative externality, the firm will choose to produce where price equals marginal cost.
A. is pressured to B. does not have to C. voluntarily chooses to D. is legally bound to