To achieve faster growth, economies can increase income tax rates in order to increase saving rates
Indicate whether the statement is true or false
FALSE
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Traffic congestion is an example of a ________
A) positive externality B) negative externality C) pecuniary externality D) free-rider problem
Drive with Us is an automobile retailer and pays floor plan financing to finance the cars they hold in inventory. If the interest rate on their floor plan financing increases from 4 to 5 percent, Drive with Us's expected marginal cost from holding additional cars in inventory will shift ________ and the profit-maximizing number of cars to hold in inventory will ________.
A) downward; increase B) upward; increase C) upward; decrease D) downward; decrease
Average variable costs:
A. decrease when marginal product rises, and increase when marginal product declines. B. increase when marginal product rises, and decrease when marginal product declines. C. increase when output declines, and decrease when output rises. D. decrease when output declines, and increase when output declines.
If price exceeds average total cost
a. the firm earns an economic profit b. there are a large number of buyers and sellers c. the firm suffers an economic loss d. the firm closes down e. the firm should reduce its production