If a firm in a competitive market decreases the quantity of output sold, total revenue should
a. decrease.
b. increase.
c. should change proportionately to the change in total costs for the firm.
d. remain the same.
Answer: a. decrease.
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If economic recovery has already occurred by the time the effects of expansionary monetary policy are felt, it could cause an inflation problem rather than curing a recession problem
a. True b. False Indicate whether the statement is true or false
If the inflation rate is 5% and the real interest rate is 4%, then the nominal interest rate is around
A. 1%. B. -1%. C. 20%. D. 9%.
For inferior goods, demand will fall when
A. income decreases. B. price decreases. C. income increases. D. price increases.
Refer to Table 20.1. George is a single taxpayer with an income of $65,000. If George had received a raise of $3,500 at the beginning of the year, he would have paid an additional ________ in income tax
A) $665 B) $945 C) $1,000 D) $1,330