If an economist recommends that the government reduce the tax rate in order to increase tax revenues (based on the Laffer curve), she is implicitly assuming that the economy is currently operating at a point
A) inside the Laffer curve.
B) outside the Laffer curve.
C) on the upward-sloping portion of the Laffer curve.
D) on the downward-sloping portion of the Laffer curve.
E) where tax revenues are maximized.
D
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Last year Christine worked as a consultant. She hired an administrative assistant for $15,000 per year and rented office space (utilities included) for $3,000 per month. Her total revenue for the year was $100,000. If Christine hadn't worked as a consultant, she would have worked at a real estate firm earning $40,000 a year. Last year, Christine's explicit costs were ________, and her implicit costs were ________.
A. $15,000; $43,000 B. $36,000; $140,000 C. $51,000; $40,000 D. $18,000; $40,000
Refer to Figure 4-1. If the market price is $1.00, what is the maximum number of burritos that Arnold will buy?
A) 1 B) 2 C) 3 D) 4
A Japanese firm exporting finished products to the United States will be a demander of U.S. dollars and a supplier of Japanese yen in the foreign exchange market
a. True b. False Indicate whether the statement is true or false
A decrease in the aggregate price level increases the purchasing power of many assets and therefore leads to a decrease in the quantity of aggregate output demanded.
Indicate whether the statement is true or false.