A 45-degree line on a graph with expenditures, E, on the vertical axis and production, Y, on the horizontal axis, represents
A) the line of disequilibrium levels of income.
B) all possible equilibrium levels of production and expenditures.
C) some of the equilibrium levels of production and expenditures.
D) None of the above.
B
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In the figure above, the tariff ________ the domestic production of shirts in the United States by ________ per year
A) increases; 8 million B) decreases; 16 million C) increases; 4 million D) decreases; 8 million
What is a laissez-faire economy?
What will be an ideal response?
An industry analyst observes that in response to a small increase in price, a competitive firm's output sometimes rises a little and sometimes a lot. The best explanation for this finding is that
A) the firm's marginal cost curve is random. B) the firm's marginal cost curve has a very small positive slope. C) the firm's marginal cost has a very large positive slope. D) the firm's marginal cost curve is horizontal for some ranges of output and rises in steps. E) the firm's marginal cost curve is downward sloping.
A corporation can elect to divide corporate profits into either dividends or retained earnings.
Answer the following statement true (T) or false (F)