People ________ their labor supply in response to a temporary decrease in government purchases because
A) increase; current or future taxes will decrease, making them financially better off.
B) decrease; current or future taxes will decrease, making them financially better off.
C) decrease; current or future taxes will increase, making them financially worse off.
D) increase; current or future taxes will increase, making them financially worse off.
A
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The principle of voluntary exchange is the concept that a voluntary exchange between two people makes both people better off
Indicate whether the statement is true or false
All else equal, when oil prices increase, oil exploration processes like horizontal drilling become more advantageous for oil companies, and this will ________ proven reserves of oil and ________ the number of years it will take to deplete the stock
of oil. A) increase; increase B) increase; decrease C) decrease; increase D) decrease; decrease
Franco's Frozen Ice produces Italian flavored ice that is sold in the freezer section of grocery stores. Currently, Franco's does not have a fixed advertising budget and advertises in grocery stores' weekly advertising flyers and on the radio. A unit of advertising in the weekly flyers costs $2,000 and a unit of advertising on the radio costs $5,000. At their current advertising levels, the
marginal benefit of advertising in the flyer is $2,500 and the marginal benefit of advertising on the radio is $5,000. Which of the following is true? A) To maximize profits, Franco's should increase the amount of advertising in flyers. B) To maximize profits, Franco's should decrease the amount of radio advertising. C) To maximize profits, Franco's should decrease the amount of advertising in flyers. D) Franco's is currently maximizing its profits from advertising.
If firms accused of antitrust violations sign a consent decree, they have
a. admitted guilt and accept the lawful penalties b. admitted guilt, but are relieved of any penalties by agreeing to cease the violations c. agreed to cease the alleged wrongdoing, without admitting guilt d. denied the accusation and requested a formal hearing or trial e. denied the accusation and given proof that it is untrue