The slope of the aggregate demand curve is generally believed to be
a) an increasing function of the interest rate
b) an increasing function of the price level
c) a decreasing function of the price level
d) horizontal
e) initially upward-sloping, then eventually becoming vertical
c) a decreasing function of the price level
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The largest source of federal government revenue in 2014 was
A) individual income taxes. B) payroll taxes to fund Social Security and Medicare programs. C) sales taxes. D) corporate income taxes.
For a typical natural monopoly, average total cost is
a. rising, often because marginal costs are very large. b. rising, often because fixed costs are very large. c. declining, often because marginal costs are very large. d. declining, often because fixed costs are very large.
Which of the following are human capital and physical capital, respectively?
a. for an accounting firm: the accountants' knowledge of tax laws and computer software b. for a grocery store: grocery carts and shelving c. for a school: chalkboard and desks d. for a library: the building and the reference librarians' knowledge of the Internet
The Herfindahl index and the concentration ratio fail to give a complete picture of an economy's competitiveness because:
A. they measure each firm's share of sales rather than each firm's share of profits. B. they don't account for mergers within an industry. C. many corporations are conglomerates, spanning a variety of different industries. D. they are based on market share, not market size.