In a duopoly if the firms have agreed to jointly maximize profits, then each firm can increase its current individual profits by producing more
a. True
b. False
Indicate whether the statement is true or false
True
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Explain the factors that determine the incidence of the payroll tax. Illustrate your answer using graphs
In the United States, who bears most of the payroll tax employers or workers? Why? (Hint: draw two separate supply and demand curves for labor. Show one with a relatively elastic supply for labor and one with a relatively inelastic supply).
Keynes called money people hold to make routine day-to-day purchases the:
a. transactions demand for holding money. b. precautionary demand for holding money. c. speculative demand for holding money. d. store of value demand for holding money.
If the U.S. continually runs a bilateral trade deficit with Japan, then
a. Japan's trade policies must be unfair to the United States. b. the United States is worse off as the result of its trade with Japan. c. Japan is the low-cost supplier of goods that we import intensively. d. both a and b are true.
Which of the following most accurately states the economic significance of exchange?
What will be an ideal response?