The above figure shows the U.S. market for wheat. With no international trade, the price of wheat in the United States is ________ per ton. With international trade, the price of wheat in the United States is ________ per ton
A) $700; $300 B) $500; $700 C) $500; $300 D) $14; $16 E) $16; $14
D
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From the net tax function: T = t0 + t1Y, where t0 < 0 and t1 > 0, it follows that, as income rises
a. average taxes falls and the surplus declines. b. average taxes rises and the deficit increases. c. average taxes falls and the deficit declines. d. Average taxes and the deficit do not change.
In general, as units of resource inputs rise, the marginal revenue product
A. rises faster under imperfect competition than under perfect competition. B. rises faster under perfect competition than under imperfect competition. C. falls faster under perfect competition than under imperfect competition. D. falls faster under imperfect competition than under perfect competition.
Which of the following trends is most likely the result of an expansionary monetary policy?
a. The demand for both costume jewelry and expensive jewelry rises. b. The demand for both economy cars and luxury cars drops. c. The demand for fast food drops, but the demand for gourmet food rises. d. The demand for cheap concert seats rises, but the demand for expensive seats drops.
Taxes in the United States are automatic stabilizers in that
A. tax revenues increase when income increases, thus offsetting some of the increase in aggregate demand. B. tax revenues decrease when income increases, intensifying the increase in aggregate demand. C. the President can increase tax rates whenever he deems such policy appropriate. D. tax rates can be adjusted by Congress to counteract economic fluctuations.