Refer to Scenario 1-4. Had the firm not produced and sold the last 500 cigars, would its profit be higher or lower, and if so by how much?
A) Its profit would be $500 lower. B) Its profit would be $1,500 lower.
C) Its profit would be $500 higher. D) Its profit would be $1,000 higher.
A
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"Discouraged workers" are officially considered ________ the labor force and ________
A) in, unemployed B) in, not unemployed C) not in, unemployed D) not in, not unemployed
In the diagram of the budget line BB, a rise in government expenditure shifts BB ________, so that an unchanged GDP the budget deficit ________
A) downward, rises B) downward, falls C) downward, remains unchanged D) upward, rises E) upward, falls
The sum of public spending on goods and services and transfer payments during a given period cannot exceed tax revenues plus borrowed funds. This is the statement for
A) ad valorem taxation. B) an excise tax. C) a sales tax. D) the government budget constraint.
If demand increases and supply decreases, quantity will
a. always increase b. always decrease c. increase only if supply decreases more than demand increases d. increase only if supply decreases less than demand increases e. decrease only if supply decreases less than demand increases