Tax cuts proposed by the Kennedy and Reagan administrations were followed by robust economic growth
a. True
b. False
Indicate whether the statement is true or false
True
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What's the firm's current contribution margin?
a. $15 b. $18 c. $3 d. $4
If the social cost is greater than the private cost in a particular market, the private equilibrium will be at a quantity:
A. equal to the socially optimal level. B. less than the socially optimal level. C. greater than the socially optimal level. D. greater than or less than the socially optimum level, depending on the size of the external costs.
Look at the following production possibilities table for drill presses and corn. The table shows the maximum combination of drills and bushels of corn that can be produced when all resources are fully employed.
Drill Presses 10 20 30 40 50 Corn (bushels) 150 140 120 90 500 Based on the above information, A) there is a constant trade—off between corn and drill presses. B) the opportunity cost of producing 30 drill presses instead of 20 drills is 120 bushels of corn. C) the opportunity cost of producing 40 drill presses instead of 30 drills is 30 bushels of corn. D) the production possibilities curve for drill presses and corn will be a straight line.
Which of the following is a characteristic of a firm in a perfectly competitive market?
A) The firm cannot make a profit in the short run because it is too small a part of the total market. B) The firm can make a profit in the long run but not in the short run. C) The firm can sell as much as it wants without having to lower its price. D) The firm must lower its price in order to increase quantity demanded.