Economic analysis indicates that high tax rates will
A) promote wasteful use of resources.
B) retard capital formation.
C) all of the above.
D) reduce productive activity.
C) all of the above.
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Refer to Figure 11-2. Diminishing returns to labor set in
A) after L1. B) after L2. C) after L3. D) immediately.
____________ is the day with the most frequent price drops,
Fill in the blank(s) with the appropriate word(s).
The figure below shows a situation where the producers of Good X are forming an international cartel. Here, MR = Marginal Revenue, and MC = Marginal Cost. The cartel will set a monopoly price for its output.
If the world market for Good X were perfectly competitive, the price per unit would be ________ and the producer surplus would be
A. $600; $22.5 billion. B. $500; $10.0 billion. C. $1,000; $50.0 billion. D. $600; $90.0 billion.
Which of the following statements is TRUE about the long-run and short-run aggregate supply curve in the classical model?
A. The long-run aggregate supply curve is vertical, and the short-run curve is horizontal. B. The long-run and short-run curves start out horizontal and eventually become vertical. C. The long-run curve is vertical, and there is no short-run curve since all adjustments occur quickly. D. The long-run aggregate supply curve is not defined, and the short run curve is vertical.