A decrease in business taxes will tend to:
a. Increase aggregate demand but not change aggregate supply
b. Increase aggregate demand and increase aggregate supply
c. Decrease aggregate supply and decrease aggregate demand
d. Increase aggregate supply but not change aggregate demand
b. Increase aggregate demand and increase aggregate supply
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As a consequence of the problem of scarcity
A. only some people can "have it all." B. there is never enough of anything. C. individuals have to make choices from among alternatives. D. things that are plentiful have relatively high prices.
Which of the following correctly describes the relationship between economic efficiency and economic equity?
A) There is often a trade-off between the two. B) There is no conflict between the two goals. C) They always call for opposite outcomes. D) They are both automatically achieved in a free market economy.
At a firm’s profit-maximizing level of output, its price is $200 and its short-run average total cost is $225. The firm
A. has a profit of $25 per unit of output. B. should shut down if its short-run average fixed cost is less than $25. C. has a loss of $100 per unit of output. D. should shut down if its short-run average variable cost exceeds $25.
If people with blue eyes earn more than people with brown eyes, we have proof of discrimination against people with brown eyes
a. True b. False Indicate whether the statement is true or false