A rise in the tax rate on businesses leads to ________
A) a decline the desired level of capital and an increase in investment
B) a decline in the desired level of capital and a decrease in investment
C) an increase in the desired level of capital and a decrease in investment
D) an increase in the desired level of capital and an increase in investment
B
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How long is it worthwhile to continue searching for a $20 bill that you lost if you value your time at $5 an hour?
A) About 2 hours if there is a fifty percent chance of finding it. B) About 4 hours, regardless of the probability of finding it. C) Only so long as you expect to find it within the next four hours, which could mean far more than four hours of searching. D) You cannot make a rational decision without first knowing whether you will find it. E) You should not search at all because the lost bill is a sunk cost.
The concept of limited liability
A) does not apply to a corporation. B) means that the owners of a corporation have liability limited to the value of the shares in the firm. C) means that owners of a firm are subject to double taxation. D) limits the amount of specialization that can occur in a firm.
For an open economy, which of the following expressions represents net exports (NX)?
A) S + G - T - I B) S + G - T + I C) S + T - G + I D) G - T + I - S E) none of the above
In perfect competition, the marginal revenue curve
A. and the demand curve facing the firm are identical. B. is always below the demand curve facing the firm. C. is always above the demand curve facing the firm. D. intersects the demand curve when marginal revenue is minimized.