The MU of computers is initially larger than the MC of producing them in a free market. We may expect output of computers to
A. fall, MC to rise, and MU to rise.
B. rise, MC to fall, and MU to fall.
C. rise, MC to rise, and MU to fall.
D. fall, MC to fall, and MU to rise.
Answer: C
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All of the following are part of the "taxes" provision of the Patient Protection and Affordable Care Act (ACA) except
A) investors earning more than $200,000 pay a new tax on their investment income. B) workers earning more than $200,000 pay higher Medicare payroll taxes. C) beginning in 2018, all taxes on employer-provided health insurance plans will be reduced or eliminated. D) pharmaceutical firms and health insurance firms pay new taxes.
If the required reserve ratio is 10 percent, currency in circulation is $400 billion, checkable deposits are $1000 billion, and excess reserves total $1 billion, then the excess reserves-checkable deposit ratio is
A) 0.01. B) 0.10. C) 0.001. D) 0.05.
An increase in spending in an economy will cause a multiplied increase in gross domestic product because
A) government spending is greater than zero B) investment is greater than zero C) investment increases as income decreases D) consumption increases as income increases E) taxes increase as income increases
Perfect competition is more conducive to technological change than any of the other market structures.
Answer the following statement true (T) or false (F)