Give an example of a trade-off faced by society
Efficiency and equality; a clean environment and a high level of income; guns and butter (national defense and consumer goods)
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The ________ plots the relationship between prices and the quantity that buyers are willing to purchase
A) supply curve B) isoquant C) indifference curve D) demand curve
A limit on the amount of strawberries that can be imported into the United States is an example of
A) the rationing function of prices protecting domestic strawberry farmers. B) a price floor set by the government. C) a price ceiling set by government. D) an import quota.
If firms are producing at a profit-maximizing level of output where the price exceeds the average total cost:
A. accounting profits must be negative. B. economic profits must be zero. C. other firms will enter the market. D. firms will exit the market.
Vertical equity can be determined by comparing the
A. Marginal tax rate of the taxpayer with the highest nominal income to the marginal tax rates of taxpayers with lower nominal incomes. B. Effective tax rate of the taxpayer with the highest nominal income to the effective tax rates of taxpayers with lower nominal incomes. C. Effective tax rates for two taxpayers with the same nominal incomes. D. Marginal tax rates for two taxpayers with the same nominal incomes.