Firms in perfectly competitive markets:
a. are price takers
b. are price makers.
c. influence price by varying the quality of output.
d. sell heterogeneous products.
a
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Vertical equity in income taxation refers to the notion that persons with different levels of income should be taxed differently
a. True b. False Indicate whether the statement is true or false
The Council of Economic Advisers
a. was created in 1946. b. advises the president of the United States on economic policy matters. c. writes the annual Economic Report of the President. d. All of the above are correct.
The most basic concept in economics is
A) wealth. B) income. C) scarcity. D) human need.
Refer to Scenario 3.2 below to answer the question(s) that follow.SCENARIO 3.2: Lettuce and spinach are substitutes. Lettuce and tomatoes are complements. Lettuce is a normal good. During the winter, about 20% of the lettuce crop was destroyed by flooding.Refer to Scenario 3.2. The floods that destroyed part of the lettuce crop would have caused the equilibrium price of spinach to ________ and the equilibrium quantity of spinach to ________.
A. increase; decrease B. decrease; decrease C. decrease; increase D. increase; increase