Unit taxes cause shifts, while ad valorem taxes cause pivots.
A. True
B. False
C. Uncertain
A. True
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"Economists assume people are selfish." Do you agree with this statement or not? Explain
What will be an ideal response?
Refer to Figure 2.2. Which diagram best represents the effect of lower fertilizer prices on the market for corn?
A. A
B. B
C. C
D. D
Above the shutdown point, a competitive firm's supply curve coincides with its:
A. marginal revenue curve. B. ?marginal cost curve. C. ?average variable cost curve. D. ?average total cost curve.
In the absence of technological progress, we know with certainty that an decrease in the saving rate will cause which of the following?
A) decrease steady state consumption B) increase steady state consumption C) have no effect on steady state consumption D) decrease steady state consumption only if the decrease in saving exceeds the increase in depreciation E) decrease steady state consumption only if the decrease in saving is less than the decrease in depreciation