Macroeconomics would be concerned with
A) implications of changes in unemployment and inflation.
B) the effects on individual consumers of changes in the price of gasoline for a business.
C) the effects of a tax on beer.
D) the effects of wage increases on steel manufacturers.
Ans: A) implications of changes in unemployment and inflation.
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In the above table, the cross price elasticity of demand for good X with good Y when PY falls from $20 to $18 is
A) -2. B) 0. C) +1. D) -1.
Each of the following provides incentives to reduce a negative externality except:
a. merger with affected firms. b. subsidizing consumption of the good being produced. c. bargaining among firms. d. taxation of the externality.
A negative income tax does not
A. increase work incentives for those who receive cash payments. B. increase work incentives for those who do not receive cash payments. C. affect incentives for the poor but affects incentives for low earners who are not poor. D. affect incentives, which is why it is efficient.
In order to achieve market power, monopolistically competitive firms use
A. their size. B. strategic behavior. C. product differentiation. D. predatory pricing.