The AD curve shifts to the right with an increase in taxes or a decrease in government purchases
Indicate whether the statement is true or false
False
You might also like to view...
Comparative advantage is determined by the
a. elasticities of demand for a good in two countries b. opportunity costs of producing a good in two different countries c. presence of absolute advantages in production d. degrees of allocative efficiency within each economy e. amounts of resources required to produce a good in different countries
Taxes on labor tend to increase the number of hours that people choose to work
a. True b. False Indicate whether the statement is true or false
Which of the following statements best describes the problem of adverse selection?
a. A type of asymmetric information in which one side of an economic relationship can take a relevant action that the other side cannot observe. b. An approach that borrows insights from psychology to help explain economic choices. c. The notion that there is a limit to the information that a firm's manager can comprehend and act on. d. The plight of the winning bidder who overestimates an asset's true value.
Refer to the graph shown, which depicts a perfectly competitive firm. When it is maximizing profit, the total profit earned by the firm represented is:
A. $275. B. $330. C. $220. D. $605.