An increase in autonomous spending leads to higher ________
A) inflation
B) output
C) real interest rate
D) all of the above
E) none of the above
B
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Figure 6-4
In Figure 6-4, total expenditure ____ as price falls from P = 12 to P = 10.
A. falls B. remains constant C. rises D. rises by more than $12
In a proportional tax system, ________
A) the average tax rate faced by an individual exceeds the marginal tax rate B) the marginal tax rate faced by an individual exceeds the average tax rate C) the average tax rate equals the marginal tax rate D) the marginal tax rate faced by all households are equal
The trend in current tariff laws is to
A) raise tariffs on foreign goods. B) keep tariffs the same. C) lower tariffs on foreign goods. D) abolish tariffs all together.
All the factors below are causes of diminishing marginal returns, except
a. Difficulty of monitoring and motivating larger workforces b. Increasing complexity of larger systems c. Division of Labor d. The "fixity' of some factor