A government may use deficit financing to smooth tax rates over time
a. True
b. False
Indicate whether the statement is true or false
True
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Which of the following statements is correct?
a. The "law" of diminishing marginal utility implies that demand curves slope upward and to the right. b. If the price of a good falls, the utility-maximizing consumer will assure that marginal utility rises. c. If the price of a good falls, the consumer will purchase more of the good in order to maximize total utility. d. MU and demand have different underlying consumer behavior assumptions.
The overriding reason why households and societies face many decisions is that
a. resources are scarce. b. goods and services are not scarce. c. incomes fluctuate with business cycles. d. people, by nature, tend to disagree.
To find the social cost of an action, add together
A) the external and accounting costs. B) the private costs and the internal costs. C) the external costs and the internal costs. D) the internal costs and the private opportunity costs.
As the inventory of a firm rises
A. there is no change in its capital. B. its tangible capital increases. C. its intangible capital increases. D. its social capital decreases.