Which of the following would shift the investment demand curve leftward?
A. an increase in business taxes
B. a decrease in business taxes
C. a tax credit for new investment
D. Firms are operating their plants at full capacity.
Answer: A
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In a competitive market equilibrium
A) marginal benefit and marginal cost are maximized. B) the marginal benefit equals the marginal cost of the last unit sold. C) total consumer surplus equals total producer surplus. D) consumers and producers benefit equally.
Low-cost flyboats offered an attractive alternative to heavier, more costly ships; however, their use was limited in many areas due to:
a. privateering and piracy. b. colonial laws that specified minimum crew sizes for many voyages. c. the Navigation Acts. d. the inability of New England shipbuilders to manufacture flyboats.
Monopolistic competitors engage in product differentiation to:
a. enhance their market power. b. make it easer to collude with other firms c. reduce costs. d. create excess capacity.
An ad valorem tariff is a money amount per unit of import that is due when the good reaches the importing country.
Answer the following statement true (T) or false (F)