Which of the following conditions would result in the short run marginal cost curve not correctly reflecting the supply behavior of a profit-maximizing firm?
a. The firm is a price taker.
b. Price exceeds average total cost.
c. The elasticity of demand facing the firm is -3.
d. the firm can vary several inputs in the short run.
c
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The overall regression F-statistic tests the null hypothesis that
A) all slope coefficients are zero. B) all slope coefficients and the intercept are zero. C) the intercept in the regression and at least one, but not all, of the slope coefficients is zero. D) the slope coefficient of the variable of interest is zero, but that the other slope coefficients are not.
Cyclical unemployment in an economy will be zero when: a. there is an expansionary gap in the economy
b. the economy is producing its natural rate of output. c. there is a recessionary gap in the economy. d. the actual price level is equal to the expected price level in the economy. e. the actual price level exceeds the expected price level in the economy.
Suppose the incomes of buyers in a market for a particular normal good decrease and there is also a reduction in input prices. What would we expect to occur in this market?
a. Equilibrium price would decrease, but the impact on equilibrium quantity would be ambiguous. b. Equilibrium price would increase, but the impact on equilibrium quantity would be ambiguous. c. Equilibrium quantity would decrease, but the impact on equilibrium price would be ambiguous. d. Equilibrium quantity would increase, but the impact on equilibrium price would be ambiguous.
Vertical equity in income taxation refers to the notion that persons with different levels of income should be taxed differently.
Answer the following statement true (T) or false (F)