Refer to the graph below. If the government wishes to collect tax revenues equal to R2, supply-side economists would strongly advise the government to set tax rates at:
A. T2 or T3
B. T2 only
C. T4 only
D. T2 or T4
B. T2 only
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Can positive economic profits persist under monopolistic competition in the long run. Why?
What will be an ideal response?
If country X can produce a unit of good 1 at a lower opportunity cost than can country Y, it is correct to state that country X
A) has a comparative advantage in producing good 1. B) has an absolute advantage in producing good 1. C) will import good 1 from country Y. D) will not produce good 1.
Which of the following is the injection into the circular flow model?
a. Money deposited in a savings account. b. Income earned through exports. c. Goods imported from abroad. d. Taxes paid by the individuals.
Large income differences will be eradicated if the market mechanism is working well.
Answer the following statement true (T) or false (F)