If a product is in surplus, its price:
A. will rise in the near future.
B. is above the equilibrium level.
C. is in equilibrium.
D. is below the equilibrium level.
Answer: B
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Annual incomes of James, Jack, and Stanley are $30,000, $50,000, and $80,000 and their tax rates are 10 percent, 20 percent, and 30 percent respectively. Which tax structure is this an example of?
A. Proportional tax B. Progressive tax C. Regressive tax D. Digressive tax
Refer to Figure 11-18. Starting from point D, a movement along isoquant2 to point F
A) increases the total cost of production with no change in output. B) increases output but not the total cost of production. C) increases both the total cost of production and output. D) increases the total cost of production and decreases output.
The self-correcting tendency of the economy means that rising inflation eventually eliminates:
A. unemployment. B. exogenous spending. C. recessionary gaps. D. expansionary gaps.
Suppose that at the current level of output, price = $12, MC = $14, AVC = $7, and ATC = $9. Which of the following is TRUE?
A. The firm should decrease output. B. The firm should shut down. C. The firm should increase output. D. The firm should maintain the current level of output.