(Last Word) In 2004, Congress passed a corporate tax relief bill with 276 provisions for tax breaks to groups such as restaurant owners, Hollywood producers, and NASCAR track owners. This is an example of the:
A. special-interest effect.
B. benefits-received principle.
C. paradox of voting.
D. principal-agent problem.
Answer: A
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The Great Depression of the 1930s, with a large number of workers and factories unemployed, would be represented in a production possibilities frontier graph by
A) a point outside the frontier. B) an intercept on either the vertical or the horizontal axis. C) a point inside the frontier. D) a point on the frontier.
Business people often use “hunches” and intuition to make decisions regarding what to produce.
Answer the following statement true (T) or false (F)
Suppose that Carla's Candy Shop finds that at the current level of output, marginal revenue is below marginal cost and average variable cost is below price. If the market price is held constant, Carla's Candy Shop should __________ in order to maximize profits
a. raise output b. reduce its price c. reduce output d. close down e. maintain its current output level
Which of the following is not likely to occur because of exchange rate fluctuations?
A. An end to flexible exchange rates worldwide. B. Inflation. C. A decrease in the demand for exports. D. An increase in the demand for imports.