If a firm is currently in short-run equilibrium earning a profit, what impact will a lump-sum tax have on its production decision?
A) The firm will decrease output to earn a higher profit.
B) The firm will increase output but earn a lower profit.
C) The firm will not change output but earn a lower profit.
D) The firm will not change output and earn a higher profit.
C
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Use the following table to answer the question below for Country Y. Column 1 is the world price of a product, Column 2 is the quantity demanded domestically (Qdd), and Column 3 is the quantity supplied domestically (Qsd). Assume the small-country model is applicable.PriceQddQsd$9.002504508.003004007.003503506.00400300Assume the small-country model is applicable. If the world price of the product is $6, then Country Y will
A. import 400 units of the product. B. import 100 units of the product. C. export 100 units of the product. D. export 300 units of the product.
The ongoing search by savers for high returns leads the bond and stock markets to direct funds to the uses that appear:
A. least likely to be productive. B. to have no risk. C. most likely to be productive. D. to have the least risk.
Refer to Table 9-2. In Year 1, if savings deposits had been $200 billion instead of $150 billion, M1 would have been
A) unaffected. B) larger by $50 billion. C) smaller by $50 billion. D) $100 billion.
An increase in the real interest rate on U.S. bonds, everything else equal, will have the following impact on the foreign exchange market:
A. the supply of dollars will increase. B. the dollar will depreciate relative to foreign currencies. C. there will be a movement up the existing demand for dollars curve. D. the demand for dollars will increase.