Inventory investment can be:
A. zero only.
B. negative, zero, or positive.
C. negative only.
D. positive only.
B. negative, zero, or positive
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Up to which point will a perfectly competitive firm continue to invest? Explain carefully
What will be an ideal response?
Horizontal equity can be determined by comparing the
A. Marginal tax rate of the taxpayer with the highest nominal income to the marginal tax rates of taxpayers with lower nominal incomes. B. Marginal tax rates for two taxpayers with the same nominal incomes. C. Effective tax rate of the taxpayer with the highest nominal income to the effective tax rates of taxpayers with lower nominal incomes. D. Effective tax rates for two taxpayers with the same nominal incomes.
Which of the following goods or services is most likely to have an elastic demand in the short run?
a. Electricity b. Gasoline c. Milk d. Toyota 4-Runner SUV
The invisible hand principle indicates that competitive markets can help promote the efficient use of resources
a. only if buyers and sellers really care, personally, about economic efficiency. b. even if business firms fail to produce goods efficiently. c. even when market participants care only about their own self interests rather than about the overall efficiency of resource use. d. if, and only if, businesses recognize their social obligation to keep costs low and use resources wisely.