The theory that government borrowing may function like an increase in taxes, that is, reducing current consumption and business expenditures, is known as
A) the marginal propensity to consume.
B) the Ricardian equivalence theorem.
C) planned tax policy.
D) Congressional Tax policy.
B)
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An increase in license fees -- a long run recurring fixed cost -- will lead to a drop in the number of firms competing in a competitive industry.
Answer the following statement true (T) or false (F)
The regulatory agency with oversight responsibility for the pharmaceutical industry is the
a. IRS. b. FDA. c. SEC. d. ITC. e. ATT.
Last year a firm made 1,000 units of its product available at a price of $5 per unit. This year the firm will still make 1,000 units available, but only if the price is $7 per unit. What is most likely to have happened?
a. Supply has increased b. Supply has decreased c. Demand has decreased d. Quantity demanded has increased e. Quantity supplied has increased
Isabella wishes to buy gasoline and have her car washed. She finds that if she buys 9 gallons of gasoline at $1.50 per gallon, the car wash costs $1, but if she buys 10 gallons of gasoline, the car wash is free. For Isabella, the marginal cost of the tenth gallon of gasoline is
a. zero. b. 50 cents. c. $1. d. $1.50.