________ in taxes will decrease consumption spending, and ________ in transfer payments will increase consumption spending
A) A decrease; a decrease B) An increase; an increase
C) An increase; a decrease D) A decrease; an increase
B
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What is the crowding-out effect and how does it work?
What will be an ideal response?
Suppose the market demand for milk is Qd = 150 - 5P. Additionally, suppose that a dairy's variable costs are VC = 2Q2 (where Q is the number of gallons of milk produced each day), its marginal cost is MC = 4Q and there is an avoidable fixed cost of $50 per day. In the long run there is free entry into the market. Suppose the demand for milk doubles. How many total active firms are in the market in the long run due to the increased demand?
A. 10 B. 20 C. 100 D. 2
This graph represents the cost and revenue curves of a firm in a perfectly competitive market.
According to the graph shown, if a firm is producing at Q3:
A. average total costs exceed the market price. B. the firm should expand production. C. marginal revenue is greater than marginal cost. D. profits are being maximized.
The introduction of the euro has eliminated currency as a barrier to trade in all European countries.
a. true b. false