A consumption tax is a tax on
a. goods but not on services.
b. the amount of income that people spend.
c. the amount of income that people earn.
d. the amount of income that people save.
b
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Market economies are not constrained by scarcity; only planned economies have that problem.
Answer the following statement true (T) or false (F)
Total profit
a. is the difference between sales revenue and costs. b. maximization is always the goal of every firm. c. is always defined the same by both economists and accountants. d. is maximized when sales are maximized.
In the figure above, the relationship between the x variable and the y variable
A) is positive.
B) is negative.
C) starts by being positive and then becomes negative.
D) starts by being negative and then becomes positive.
In constructing the monopolist's input demand curve, which of the statements is FALSE?
A. A monopoly restricts output and hires fewer units of labor than a perfectly competitive industry. B. The supply curve a monopoly faces is horizontal because the monopoly is a price taker. C. The demand curve has a negative slope due to the law of diminishing marginal product. D. Marginal revenue is always positive.