In which of the following ways does government affect the consumption component of planned aggregate expenditures?
What will be an ideal response?
through net taxes, which change disposable income
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Use the figure below to answer the following question.
If actual production and consumption occur at Q1 and the price is P2, deadweight loss equals area
A. f. B. b. C. d. D. b + d.
Oligopolistic industries are characterized by a
A) few large firms and no barriers to entry. B) large number of firms and no barriers to entry. C) few large firms and substantial barriers to entry. D) large number of firms and substantial barriers to entry.
For a monopolist with a downward-sloping demand curve,
A. when the price is equal to zero, marginal revenue is equal to zero. B. the coefficient of price elasticity of demand is zero. C. as price increases, marginal revenue decreases. D. as price decreases, marginal revenue decreases.
What economic functions do rent, interest, and profit payments perform? How effective are they in performing these functions?
What will be an ideal response?