Which of the following would likely be studied by a microeconomist rather than a macroeconomist?
a. the effect of foreign direct investment on economic growth
b. the effect of a sales tax on the cigarette industry
c. the effect of an investment tax credit on the economy's capital stock
d. the effect of a war on government spending
b
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Which of these options best reflects Jim’s opportunity cost of operating his own business?
A. The total amount of money he spends to obtain capital equipment B. The value of Jim’s managerial skills that are used to run the business C. The cost of hiring his laborers D. All of the responses are correct.
The saving schedule shows the relationship of saving of households to the level of
A. disposable income. B. consumption. C. the average propensity to save. D. investment.
The global financial crisis showed the need for increased financial regulation, however, too much or poorly designed regulation could
A) choke off financial innovation. B) increase the efficiency of the financial system. C) increase economic growth. D) increase international financial integration.
The profit maximizing output level for a perfectly competitive firm is always where
A. P = AVC. B. MC = ATC. C. MC = AVC. D. P = MC.