Revenues from social insurance taxes are earmarked to pay for Social Security and Medicare
a. True
b. False
Indicate whether the statement is true or false
True
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Write an essay on the Leontief Paradox. Include in your discussion what Leontief found that was so paradoxical as well as a brief description of several of the various reconciliations that have been offered to explain the Paradox
What will be an ideal response?
When the market price has fallen below a firm's ATC but is above its AVC, in the short run, the firm:
A. can minimize its losses by staying open. B. is earning positive profits. C. then a firm is covering all of its fixed costs, but not all of its variable costs. D. then MC must be greater than MR.
A single firm that charges the monopoly price in the market earns $600. If another firm successfully enters the market, the incumbent's profits fall to $350 and the entrant earns $275. If the incumbent engages in limit pricing, its profits are $400. For what interest rate, i, is limit pricing a profitable strategy for the incumbent?
A. 0.25 < i < 0.75 B. i > 4 C. i < 0.25 D. 0.75 < i < 4
Show, using a supply and demand diagram, why we would expect a stronger economy to result in higher interest rates.
What will be an ideal response?