Identify each of the following acts as representing either saving or investment
a. Fred uses some of his income to buy government bonds.
b. Julie takes some of her income and buys mutual funds.
c. Alex purchases a new truck for his delivery business using borrowed funds.
d. Elaine uses some of her income to buy stock in a major corporation.
e. Henrietta hires a builder to construct a new building for her bicycle shop.
a. Fred is saving.
b. Julie is saving.
c. Alex is investing.
d. Elaine is saving.
e. Henrietta is investing.
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Assume someone organizes all farms in the nation into a monopoly. What is the monopoly's marginal cost curve?
A) It is a horizontal line at the competitive industry's price. B) It is a vertical line at the formerly competitive industry's quantity. C) It is a vertical line at the monopoly's chosen output level. D) It is the formerly competitive industry's supply curve. E) It is the same as the formally competitive industry's average total cost curve.
The imposition of all taxes, except a Pigouvian tax, leads to ________
A) an increase in consumer surplus B) an increase in producer surplus C) a fall in the price of the good D) a loss in total welfare
Which one of these people said this? "The art of taxation consists in so plucking the goose as to obtain the largest possible amount of feathers with the smallest amount of hissing."
A. John Maynard Keynes B. Milton Friedman C. Karl Marx D. Jean Baptiste Colbert
Voluntary exchange ________ economic efficiency because neither the buyer nor the seller would agree to a trade unless ________
A) increases; they both benefit B) increases; only one party benefits C) decreases; neither benefit D) decreases; they both benefit