An investment tax credit effectively ________ the user cost of capital, and thus ________ gross investment
A) lowers, raises
B) lowers, lowers
C) raises, raises
D) raises, lowers
A
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Use the following graph for the market for beef to answer the question below.
Refer to the graph, which shows that the demand for beef shifted from D1 and D2. The change in equilibrium from E1 to E2 is most likely to result from a(n)
A. increase in the cost of cattle feed. B. decrease in consumer incomes. C. increase in the price of pork. D. decrease in the tax on beef products.
Generally, microeconomics
A) has little to say about the entrepreneur B) says a good bit about the entrepreneur. C) equates the entrepreneur and the manager. D) equates management and shareholders.
According to the concept of the liquidity trap,
A. at very low interest rates people would put their money in the bank. B. at very low interest rates people would simply hold their money. C. at very high interest rates people would simply hold their money. D. people will lend out their money no matter what the interest rate happens to be.
Refer to the diagram, where S d and D d are the domestic supply and demand for a product and P c is the world price of that product. With free trade, that is, assuming no tariff, the outputs produced by domestic and foreign producers respectively would be:
A. v and vz.
B. w and wy.
C. w and wz.
D. vx and xz.