The government lowers the marginal income tax rates so that after-tax wages are increased. This most likely will shift the labor
A. supply curve to the left.
B. demand curve to the right.
C. supply curve to the right.
D. demand curve to the left.
Answer: C
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Spending VCU4 on real-world goods and services causes the nation's:
a. Monetary base to remain the same. b. M2 money supply to fall. c. M2 money multiplierto fall. d. M2 money supply to rise.
At which point is society producing the most output possible with the available resources and technology? (See Figure 1.1.)
A. A. B. B. C. C. D. D.
If a firm has excess capacity, it
A) produces less than its efficient scale. B) should advertise to maximize profits. C) should decrease its markup to increase its profit. D) is a perfectly competitive firm. E) must face a horizontal demand curve.
A perfectly competitive firm has total revenue and total cost curves given by:
TR = 100Q TC = 5,000 + 2Q + 0.2 Q2 a. Find the profit-maximizing output for this firm. b. What profit does the firm make?