If the wage rate increases and firms in a perfectly competitive industry are hiring labor, then
A) the firms will quit using labor.
B) profits will increase.
C) market supply will decrease.
D) market price will decrease.
Answer: C) market supply will decrease.
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The threat of a large fine for failure to pay income taxes is an example of
A) the excessive power of the Internal Revenue Service. B) the ineffectiveness of incentives to get people to pay their taxes. C) a negative incentive to get all people to pay taxes. D) people failing to consider all the benefits the government provides them.
Which of the following is a result of the health care reform enacted in 2010? a. Everyone in the U.S. must purchase health-care coverage or pay a fine
b. Every firm with more than 50 employees must offer health-care coverage. c. Health insurance companies must cover everyone that applies regardless of preexisting conditions. d. all of the above
In this book, An inquiry into the Nature and Causes of the Wealth of Nations, Adam Smith described a visit he made to a
A) car factory. B) Pin factory. C) Washing Machine Factory. D) farm.
Gross Investment 18 National Income 100 Net Exports 2 Personal income 85 Personal Consumption Expenditures 70 Saving 5 Government Purchases 20 Net Domestic Product 105 Statistical Discrepancy 0 Refer to the above data. Disposable income is:
a) $83. b) $73. c) $75. d) $77.