If a firm's rent increases, it will affect its cost structure in which of the following ways?
A) AVC will increase.
B) MC will increase.
C) TFC will increase.
D) All of the above will increase.
C
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When the economy enters a recession, automatic stabilizers create:
a. higher taxes. b. more discretionary spending. c. budget deficits. d. budget surpluses.
Suppose a previously competitive labor market turns into a monopsony. The labor supply curve faced by the new monopsonist is
a. above the labor supply curve under perfect competition b. the market supply curve of labor c. below the labor supply curve under perfect competition d. changed because workers are now more willing to supply labor e. perfectly horizontal
A laissez-faire macroeconomic policy, based on a __________ in self regulating properties of the economy, implies __________ by the government
A) belief; active policymaking B) belief; noninterference C) disbelief; active policymaking D) disbelief; noninterference
Economists tend to see taxing an action that produces a negative externality as:
A. the second best solution possible, but often unattainable. B. the best solution possible and often the most attainable. C. the best solution possible, but often unattainable. D. the second best solution possible but one that is attainable.