Suppose Congress passes a one-time tax refund of all taxes paid by firms in an industry last year. This will lead to a drop in output price in the industry.
Answer the following statement true (T) or false (F)
False
Rationale: The tax refund is neither an economic cost or an economic revenue for the firm -- because nothing the firm does now can affect the refund. Thus, nothing changes.
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As the price of DVD players has fallen over the last two years, more DVD players have been sold by consumer electronics firms. Is this a violation of the law of supply?
Complementary goods are goods:
A. that are consumed jointly. B. that are consumed in place of one another. C. for which demand increases when the price of its complementary goods increases. D. for which demand decreases when the price of its complementary goods decreases.
How does human specialization contribute towards increasing an economy's output?
A. It exploits the differences in abilities B. It is a process of creative destruction C. It pushes each worker to master the whole product D. It encourages people to be "jacks-of-all-trades"
For typical goods, supply curves are
A. horizontal. B. upward sloping. C. downward sloping. D. vertical.