Figure 11-2



Which graph in Figure 11-2 best reflects a Keynesian's view of the short-run impact of an increase in the personal income tax rate?



a.

1



b.

2



c.

3



d.

4


c

Economics

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If a firm that has variable costs of $8 million shuts down, we may conclude that its total revenue is __________.

Fill in the blank(s) with the appropriate word(s).

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Explain why a firm maximizes its total profits by producing where MC = MR. To answer this question completely, you should explain why output levels greater than and less than the level where MC = MR do not maximize profits.

What will be an ideal response?

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To determine whether a particular good is a normal good, a luxury good, or an inferior good, you would want to observe what happens to demand for the good when __________ changes.

A. supply B. the price of raw materials C. price D. income

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If the price of a good increases by 5% and the quantity demanded decreases by 5%, then at that price, the good is

A. perfectly inelastic. B. unit elastic. C. elastic. D. inelastic.

Economics