An explanation for why the short-run aggregate supply curve is upward-sloping is because:
a. nominal incomes are fixed.
b. the quantity of real output supplied is inversely related to the aggregate supply curve.
c. an increase in price will increase the supply of money.
d. the capital-output ratio.
a
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If a person owns 51 percent of the common stock in a corporation,
a. that person receives all of the corporation's profits b. that person is the only one allowed to vote at shareholder meetings c. that person loses the protection of limited liability d. that person can effectively control the business e. the corporation now becomes a sole proprietorship
The main disadvantage to forming a corporation is
a. low profits b. double taxation c. small number of owners d. difficulty in raising funds e. stockholders usually control the company
Sketch graph a natural monopoly like a city transportation subway with the typical ATC, MC, and demand and MR functionsA. Label the profit maximizing monopoly price with a P1.B. Label the typical public utility commission regulated price which requires no subsidy as P2.C. Label the socially efficient price as P3.D. Shade in the area of the subsidy required in one of the cases above.E. Explain why a subsidy is often used for public transportation but not for municipal water supply.
What will be an ideal response?
When a unit tax of $2 is levied on a product
A) the entire $2 is paid by the consumer. B) the entire $2 is paid by the producer. C) both the consumer and producer pay $2 each. D) the consumer pays part of the $2 and the producer pays the rest.