When considering the factor distribution of income, which of the following income is represented as proprietor income?
A. Interest for loans on capital.
B. Rent for capital.
C. Wages for workers
D. Labor or capital factors that proprietors put into their businesses
Answer: D
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Explain the following statement: "People hate taxes primarily because of income effects while economists hate taxes primarily because of substitution effects."
What will be an ideal response?
Suppose the government has declared beer to be an illegal substance and imposes a fine on any person caught selling a beer. Buying beer, however, remains legal
Using the above figure, in which CBL is the cost of breaking the law, what is the equilibrium price and quantity with this new law in effect? A) $5 per quart and 300 quarts of beer B) $3 per quart and 500 quarts of beer C) $3 per quart and 100 quarts of beer D) $1 per quart and 300 quarts of beer
According to classical economists, a decrease in the rate of interest will
A) increase unemployment. B) increase consumer saving. C) increase business investment. D) increase business failures.
The position of the long-run aggregate supply curve is determined by the ______.
a. maximum price level in the economy
b. short-run aggregate supply curve
c. natural rate of real output
d. long-run aggregate demand curve