________ increases households' saving
A) A decrease in the real interest rate
B) A tax cut that increases disposable income
C) Higher expected future income
D) A stock market boom that increases the purchasing power of households' wealth
B
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If Project A has a cost of $5 and provides a benefit of $10, and Project B has a cost of $2 and provides a benefit of $4, then switching from Project A to Project B:
A) increases the net benefit by $3. B) increases the net benefit by $6. C) decreases the net benefit by $6. D) decreases the net benefit by $3.
The average product is the greatest in the short run when the
A) total product is maximized. B) marginal product is equal to zero. C) marginal product is maximized. D) marginal product is equal to the average product. E) marginal product is greater than the average product.
When the economy experiences a bust, the government knows exactly which policies will spur an economic recovery.
Answer the following statement true (T) or false (F)
Total surplus with a tax is equal to
a. consumer surplus plus producer surplus. b. consumer surplus minus producer surplus. c. consumer surplus plus producer surplus minus tax revenue. d. consumer surplus plus producer surplus plus tax revenue.