A decrease in business taxes will tend to ________.
A. decrease aggregate demand
B. increase aggregate supply
C. increase aggregate supply but not change aggregate demand
D. increase aggregate demand but not change aggregate supply
Answer: B
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Which of the following are correct statements about implicit and explicit costs?
i. Normal profit is an implicit cost. ii. Economic depreciation is an explicit cost. iii. Wages are an explicit cost. A) ii and iii B) i and iii C) iii only D) i, ii, and iii E) i only
The decline in stock prices from 2000 through 2002
A) increased individuals' willingness to spend. B) had no effect on individual spending. C) reduced individuals' willingness to spend. D) increased individual wealth.
The more specialized and highly valued a worker's skills are,
a. the lower is her stock of human capital. b. the more likely she is to earn economic rent. c. the less likely she is to sell her skills on the primary labor market. d. the more likely she is to be directly affected by minimum wage legislation.
The government sometimes provides public goods because
a. private markets would not produce any of the goods. b. private markets would not produce the efficient quantity of the goods. c. private markets would charge too high a price for the goods. d. the government produces public goods more efficiently than private markets can.