Supply-side economists believe reductions in tax rates can
A) shift the aggregate demand curve to the left.
B) shift the short run aggregate supply curve to the left.
C) increase output and lower prices.
D) decrease output and lower prices.
C
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Capital gains are
A. the amount of income a taxpayer has after taxes are paid. B. total sales prices from assets. C. any profit you have from asset sales. D. total net income from all sources.
Several firms want to be the only horse carriage service in a small tourist town and must pay the city for a license to operate as a monopoly. Competition among the potential firms will result in
A) bidding up the price of the license so that the winning firm makes $0 economic profit. B) the winning firm making an economic profit because it will be a price maker. C) the winning firm making an economic profit because it will have no competition. D) the winning firm making an economic profit because rent seeking cannot occur. E) a $0 economic profit because monopolies are illegal.
The real problem for people in many _______________ countries is not that globalization through international trade has made their lives worse, but rather that they have so few good employment alternatives.
a. low-income b. high-income c. large d. small
When demand falls, the price charged by a monopoly under an average-cost pricing policy will fall.
Answer the following statement true (T) or false (F)