What is the difference between product markets and factor markets?
What will be an ideal response?
Product markets are markets for goods and services. Factor markets are markets for the factors of production, which are the inputs used to make goods and services.
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Which of the following is not true about the tax exemptions on interest from municipal bonds?
A. It is a tax loophole. B. It reduces excess tax burden. C. It helps the wealthy the most. D. It makes the tax system less progressive.
Does it matter how much a developing country saves? Explain why or why not. Discuss theories and evidence on whether developing countries can increase the net savings rate in the economy through public policy
In particular, consider whether this can be accomplished through increased or decreased taxation of one or more types, and increased or decreased government spending of one or more types.
Figure 6.2 shows the cost structure of a firm in a perfectly competitive market. If the market price is $10 and the firm chooses the profit-maximizing output level, its profit is:
A. $1,000. B. $800. C. $720. D. $200.
Refer to the information provided in Figure 2.4 below to answer the question(s) that follow.
Figure 2.4According to Figure 2.4, as the economy moves from Point B to Point D, the opportunity cost of motorcycles, measured in terms of hybrid cars,
A. increases B. remains constant. C. initially increases, then decreases. D. decreases.