For a linear demand curve that is downward sloping, the marginal revenue curve
A) will be to the left of the demand curve and twice as steep.
B) will be to the right of the demand curve and twice as steep.
C) will be to the left of the demand curve and half as steep.
D) will be the same as the demand curve.
B
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The basic economic problem is
a. how to become wealthy b. how to save the planet from pollution c. how to equally distribute income d. meeting people's wants and needs in a world of scacity
Total taxes paid divided by total income is called the
a. lump-sum tax liability. b. marginal tax rate. c. average tax rate. d. average consumption tax liability.
If, with one unit of labor, the U.S. can produce 20 units of computer software and 10 units of computer hardware, and China can produce 6 units of software and 6 units of hardware, then trade can make
A. both better off. B. the U.S. better off but not China. C. neither better off. D. China better off but not the U.S.
The Fed believes there are three advantages to using the personal consumption expenditures (PCE) price index instead of the CPI as a measure of inflation. These advantages include all of the following except
A) the PCE is a chain-type index as opposed to the market-basket approach used for the CPI, and the market-basket approach tends to overstate inflation. B) the PCE includes the prices of more goods and services than the CPI, so it is a broader measure of inflation. C) the PCE allows the Fed to better track historical trends in inflation than does the CPI because PCE values can be recalculated as new data becomes available. D) the PCE includes the value of imported products purchased by consumers , whereas the CPI does not, and imports make up a growing portion of consumer purchases in the United States.