Under what circumstances are the marginal expenditure for an input and the average expenditure always equal? Where there is a
A) competitive buyer.
B) competitive seller.
C) monopoly buyer.
D) monopoly seller.
A
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Explain what economists mean when they characterize the income tax system as progressive
What will be an ideal response?
If the economy is experiencing an inflationary gap in the short run, an increase in the budget surplus
A) will reduce the size of the inflationary gap. B) will increase the size of the inflationary gap. C) will cause an increase in inflation and increase aggregate supply. D) will increase aggregate demand and will increase the price level.
In the aggregate expenditures model, a tax increase causes a(n):
a. upward shift in the aggregate expenditures curve. b. downward shift in the aggregate expenditures curve. c. shift in the 45-degree line. d. rightward movement along the aggregate expenditures curve. e. leftward movement along the aggregate expenditures curve.
Nations trade what they produce in excess of their own consumption to:
a. generate jobs for the domestic economy. b. earn "good will" from the World Bank. c. prevent chronic surpluses from driving down domestic prices. d. acquire other things they want to consume. e. reduce the size of their foreign trade deficit.