The income-expenditure model is best used for short-run analysis of economic fluctuations
Indicate whether the statement is true or false
TRUE
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Greg and Todd form a partnership and start a business in which each has a 50 percent share of the profit. After a year, the firm goes bankrupt and has debts of $20,000. Greg has no money, but Todd has $25,000 in the bank
Todd must pay ________ of debt. A) $0 because in a partnership each partner must pay the same B) $0 because partners in a partnership have limited liability C) half, or $10,000 D) $20,000
If a per-unit tax on output sold is imposed on a monopoly's product, the monopolist will increase its market price by the full amount of the tax
Indicate whether the statement is true or false
Examples used in the text to illustrate "competition among the few" include all of the following industries except
a. cereal b. airline c. fish d. automobile e. baby food
Which of the following decisions best reflects marginal thinking?
a. deciding to get married b. starting a new business c. attending graduate school d. switching phone carriers