Which of the following statements is correct for the case of a downward-sloping demand curve (beyond the first unit of output)?
A) P = AR = MR
B) P = AR > MR
C) P > AR > MR
D) P = AR < MR
B
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Government policies which reduce the price of education increase ________ in the AK growth models or increase ________ in the production function for new ideas in the two-sector growth model
A) the capital stock; the productivity of researchers B) the efficiency index; the size of the labor force C) the proportion of the labor force devoted to research; the capital stock D) the productivity of researchers; the size of the labor force
One consequence of raising tax rates is that it
a. provides an added incentive to work b. provides less incentive to participate in the underground economy c. always increases total tax revenues d. leads to less underreporting of income e. leads to more underreporting of income
In the consumption function, consumption is caused by changes in the:
a. price level. b. level of disposable income. c. interest rate. d. level of investment. e. level of real assets.
A firm's total profit equals its marginal revenue minus its marginal cost
a. True b. False Indicate whether the statement is true or false