If the government ________ taxes to pay for spending on infrastructure, the result will most likely be a(n) ________ in capital deepening.
A. increases; increase
B. decreases; increase
C. increases; decrease
D. eliminates; elimination
Answer: A
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The average total cost curve of a firm is U shaped.
Answer the following statement true (T) or false (F)
Output in the goods and services market will be sustained into the future
a. if aggregate demand and short-run aggregate supply are in balance. b. only when the prior choices of decision makers were based on a correct anticipation of prices. c. only when prices are rising. d. only when wage rates are declining.
A profit-maximizing monopolist chooses the output level where MR = MC and chooses the corresponding price from the marginal revenue curve.
a. true b. false
The absolute price elasticity of demand for a vertical demand curve
A. is infinite. B. is 0. C. is 1.0. D. depends on where one is on the demand curve.