Which of the following shocks have been emphasized most often with respect to real business cycle theory?
a. Shocks to technology
b. Variations in environmental conditions
c. Changes in the real (relative) prices of imported raw materials
d. Changes in tax rates
e. None of the above
A
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Which of the following would be the most likely effect of a 75 percent tax on punitive awards by juries?
A. An increase in pretrial settlements since plaintiffs are willing to accept lower settlement amounts that are not taxed B. A decrease in the number of cases settled out of court C. An increase in the incentive for plaintiffs to pursue legal action against individuals or businesses who have caused injury due to gross negligence D. An increase in the number of lawsuits asking for punitive damages
Exhibit 7-3 A marginal product curve
As shown in Exhibit 7-3, the law of diminishing returns applies where there are:
A. more than 5 workers per day. B. fewer than 2 workers per day. C. fewer than 5 workers per day. D. between 2 and 5 workers per day.
On a linear demand curve, demand is ________ at the middle of the demand curve than it is at small quantities.
A. more elastic B. less elastic C. equally elastic D. There is insufficient information in the question.
Expenses that a firm does NOT have to pay out of pocket are
A) wages of employees. B) taxes. C) implicit costs. D) explicit costs.