Which of the following would be the best supply-side policy to increase AS?
A. Increase the supply of money.
B. Increase capital gains taxes.
C. Reduce marginal tax rates.
D. Increase the number of safety compliance reports.
Answer: C
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In what way does long-run equilibrium under monopolistic competition differ from long-run equilibrium under perfect competition?
A) Firms in perfect competition achieve allocative efficiency while firms in monopolistic competition achieve brand efficiency. B) Firms in perfect competition achieve productive and allocative efficiency while firms in monopolistic competition achieve neither allocative nor productive efficiency. C) The only difference is that in a monopolistically competitive market there are many brands to choose from while in a perfectly competitive market there is one standard product. D) Firms in perfect competition achieve productive efficiency while firms in monopolistic competition achieve allocative efficiency.
If a good's demand function is Q = 30 - 3P, then calculate the price elasticity of demand when
a. good price is $3 using the point elasticity formula b. good price is $4 using the point elasticity formula c. good price decreases from $4 to $3, using the arc elasticity formula d. good price is $5, using the point elasticity formula e. good price increases from $4 to $5, using the arc elasticity formula
When one party to a transaction has information that the other party does not have, they have a situation of:
a. asymmetrical information. b. nondisclosure. c. imperfect negotiation stances. d. collateral warranty.
Which of the following factors would increase capital mobility?
a. fixed exchange rates. b. differences in tax laws between countries. c. different accounting standards between countries. d. both a and b. e. All of the above.