If the ________ effect is greater than the ___________ effect, a tax cut will increase revenues.
A. price; quantity
B. quantity; income
C. income; price
D. quantity; price
D. quantity; price
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In the long run, if the output of a firm is zero then its total cost will be equal to its total fixed cost
a. True b. False Indicate whether the statement is true or false
If Babette's Bicycle shop can rebuild three bicycles for $200 and four bicycles for $240, then the average variable cost of four bicycles
a. equals $40 b. cannot be determined without more information c. equals $60 d. equals $240 e. equals $10
An inferior good is one
a. produced by American industries. b. whose quantity demanded falls when the purchaser's income rises. c. ordinarily bought by college students from college-town merchants. d. suitable for a garage sale.
Figure 10-5
In Figure 10-5, which graph best illustrates the situation of an economy with high unemployment that experiences an increase in investment spending?
a.
(1)
b.
(2)
c.
(3)
d.
(4)