Personal income taxes rise. This lowers __________, which lowers __________ and the __________ curve shifts __________
A) net exports; aggregate demand (AD); AD; leftward
B) consumption; short-run aggregate supply (SRAS); SRAS; rightward
C) government revenue; net exports; AD; rightward
D) consumption; aggregate demand (AD); AD; leftward
E) none of the above
D
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If a market is such that, at the market equilibrium quantity, the benefit of the last unit produced just equals its marginal cost
a. it has earned a positive economic profit b. it has achieved productive efficiency c. it has achieved allocative efficiency d. it has achieved economies of scale e. there are further trades than can increase producer surplus
Which of the following is not a reason for the downward slope of an aggregate demand curve?
a. Real balances effect. b. Real interest-rate effect. c. Net exports effect. d. All of these are reasons.
If a competitive market operates perfectly, it relies on:
A. the number of people buying goods. B. the laws of supply and demand. C. how many products can be produced for sale. D. how much people are willing to pay for the products.
Refer to the above figure. The wage rate under perfect competition is
A. W2. B. W3. C. W4. D. W5.