The nonlabor income of households will decrease, causing consumption to decrease and labor supply to increase, if the government
A. implements expansionary fiscal policy.
B. increases transfer payments.
C. decreases the personal income tax.
D. increases the corporate profits tax.
Answer: D
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The area of economic profit shown in the above figure for the single-price monopolist is
A) bed. B) P3P5fc. C) 0P5fQ1. D) 0P4eQ3.
Very Technical is a firm that sells computing equipment. It costs Very Technical $50 for each order of computer monitors and the variable cost of placing an order is $2 per monitor. If Very Technical sells 1,000 computer monitors a year and they order 25 monitors, what is the annual ordering cost of the monitors?
A) $4,000 B) $10,000 C) $2,500 D) $50,000
The quantity theory of money assumes that
a. the national economy tends to operate at less than full. b. the velocity of money is unstable. c. the national economy tends to operate at full employment. d. the velocity of money varies with changes in interest rates.
When no output gap exists actual output ________ potential output and the rate of inflation will tend to ________.
A. exceeds; increase B. equals; remain the same C. exceeds; decrease D. is less than; decrease