A downturn in business confidence may cause a ________ in j, and an ________ of the true user cost of capital, both depressing investment
A) rise, overestimate
B) rise, underestimate
C) fall, overestimate
D) fall, underestimate
C
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In the one-input model, profit is always maximized where marginal revenue product is equal to the input price.
Answer the following statement true (T) or false (F)
If activists successfully lobbied government to force firms to produce more output than they normally would in a perfectly competitive market,
A) consumer surplus would decline. B) producer surplus would increase. C) taxation would solve the problem. D) total surplus in the market would decline.
An examination of tax rates for federal income tax in the United States demonstrates that for most people, the marginal tax rate is ______.
a. lower than the average tax rate b. the same as the average tax rate c. higher than the average tax rate d. the inverse of the average tax rate
The effects of the national health care program on goods and services markets will
A) increase the marginal cost of the firm. B) increase the quantity produced of the firm. C) consumers will pay lower prices for many goods and services. D) decrease the quantity demanded for all goods and services.