Answer the following questions true (T) or false (F)
1. Lowering the individual income tax rate will increase household disposable income and consumption spending.
2. Contractionary fiscal policy involves decreasing government purchases or increasing taxes.
3. Expansionary fiscal policy is used to increase aggregate demand in an attempt to fight rising inflation.
1. TRUE
2. TRUE
3. FALSE
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The table below shows a pizzeria's fixed cost and variable cost at different levels of output. Pizza's sell for $20 each.Number ofPizzas Per DayFixed Cost($/Day)Variable Cost($/Day)050002550015050500250755004501005008501255001,650When the pizzeria makes 100 pizzas per day, it earns an economic ________ of ________.
A. profit, $650 B. loss, $500 C. profit, $1,150 D. loss, $650
If the use of a common resource is not regulated,
a. no one can enjoy it. b. it will tend to be underused. c. property rights will be clearly defined. d. it will be overused.
Which of the following is most likely a fixed cost?
A. Labor cost. B. Property taxes. C. Energy cost. D. Raw materials cost.
When setting prices, the monopolist may choose to charge alternative customers different prices based on: a. geographical location. b. age
c. income. d. all of the above