In the short run
A) existing firms do NOT face limits imposed by a fixed factor of production.
B) all firms have costs that they must bear regardless of their output.
C) new firms can enter an industry.
D) existing firms can exit an industry.
B) all firms have costs that they must bear regardless of their output.
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In the 1980s, President Ronald Reagan argued that high tax rates distorted economic incentives to work and save. In the 1990s, President Bill Clinton argued that the rich were not paying their fair share of taxes. Which of the following statements best summarizes the economic theories behind the differing philosophies?
a. President Reagan was concerned about vertical equity, whereas President Clinton was concerned about horizontal equity. b. President Reagan was concerned about average tax rates, whereas President Clinton was concerned about horizontal equity. c. President Reagan was concerned about marginal tax rates, whereas President Clinton was concerned about vertical equity. d. None of the above is correct.
Refer to the information provided in Figure 1.7 below to answer the question(s) that follow.
Figure 1.7Refer to Figure 1.7. At Point A, what is the value of Y?
A. 2 B. 4 C. 6 D. 8
In monopolistic competition and ________, economic profit will move towards zero.
A. monopoly B. perfect competition C. natural monopoly D. oligopoly
Timmy can edit 2 pages in one minute and he can type 80 words in one minute. Olivia can edit 1 page in one minute and she can type 100 words in one minute. Timmy has an absolute advantage and a comparative advantage in editing, while Olivia has an absolute advantage and a comparative advantage in typing
a. True b. False Indicate whether the statement is true or false