Which of the following actions could be undertaken if the government wants to reduce a recessionary gap?
A. Increase taxes more than the amount of reduction in government spending.
B. Increase taxes and reduce government spending.
C. Increase taxes and increase government spending.
D. Reduce taxes and increase government spending.
Answer: D
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A ________ demand curve for shampoo would be caused by a change in the price of shampoo
A) positively sloped B) leftward shift of the C) rightward shift of the D) movement along the
Which of the following statements regarding accounting and economic profits is FALSE?
A. Economic profits = total revenue - (explicit + implicit costs) B. Economic profits can be zero even if accounting profits are positive. C. Accounting profits can be negative if economic profits are positive. D. Accounting profits = total revenue - explicit costs
A competitive firm has been selling its output for $10 per unit and has been maximizing its profit. Then, the price rises to $14, and the firm makes whatever adjustments are necessary to maximize its profit at the now-higher price. Once the firm has adjusted, its
a. marginal revenue is lower than it was previously. b. marginal cost is lower than it was previously. c. quantity of output is higher than it was previously. d. All of the above are correct.
Which of the following is the most likely to be a variable factor of production at a university?
A. The size of the student union. B. The size of the football stadium. C. The location of the university. D. The number of librarians.