Which of the following scenarios would be most likely to cause the shift in the demand of loanable funds from D0 to D1, shown in the following diagram?
a) A decrease in investment tax credits.
b) A technological advancement that increases productivity.
c) A decrease in business taxes.
d) The lifting of business regulations.
Ans: a) A decrease in investment tax credits.
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All economists agree that the firm's only goal is to maximize profit
Indicate whether the statement is true or false
How does an increase in taxes affect the expenditure schedule?
a. It causes movement to the left along the schedule. b. It causes the schedule to shift upward. c. It causes movement to the right along the schedule. d. It causes the schedule to shift downward.
The biggest breakup of a trust under the Sherman Act was the breakup of the ___________.
Fill in the blank(s) with the appropriate word(s).
A monopsonist wants to purchase more labor. Which of the following statements is TRUE?
A) The wage rate that the monopsonist has to pay future workers is lower than it pays current workers since there is no other place to work. B) The wage rate that the monopsonist has to pay future workers will be the same rate it pays current workers. C) The wage rate that the monopsonist has to pay future workers is higher than what it will continue to pay current workers. D) The monopsonist will have to raise the wage rate for current and additional employees.