An increase in net taxes (taxes paid by the private sector to the government less transfer payments and interest payments made by the government to the private sector) will:
A. increase private saving.
B. increase public saving.
C. decrease public saving.
D. reduce investment in new capital equipment.
Answer: B
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Which of the following does NOT help explain why oligopolies exist?
A) economies of scale B) mergers C) product homogeneity D) barriers to entry
The adult population of a country is 200 million. Of this population, 120 million are employed and 20 million are unemployed. The labor-force participation rate in this country is _____
a. 50% b. 30% c. 70% d. 35%
In the above figure, for any output level larger than Q3, this firm experiences
A. economies of scale. B. decreasing long run average costs. C. diseconomies of scale. D. constant economies of scale.
Homogeneous products are indistinguishable from one another.
Answer the following statement true (T) or false (F)