Total revenues increase as output increases along sections of the demand curve that are:
A. downward sloping.
B. price elastic.
C. price inelastic.
D. upward sloping.
B. price elastic.
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The property tax may be regressive even though wealthy people own much more taxable property than do poor people. This possibility arises because:
A. marginal and average tax rates on property tend to converge. B. wealthy people can evade property taxes while poor people cannot. C. property taxes on rental property and business property are shifted. D. statutory property tax rates decline as the value of property rises.
In the short run, a firm that is incurring losses would always be better off if it keeps producing.
Answer the following statement true (T) or false (F)
What are two arguments against using the economic method?
a. It is not a fair and diverse approach. b. It is not possible to prove that people behave rationally. c. People do not and should not take only economic factors into their decision making. d. It is too complicated and theoretical.
Interest foregone on financial capital invested in a firm represents an economic cost
a. only if the firm borrows to finance capital investments. b. only when the funds are used to buy machinery. c. because funds invested in the firm could be earning interest elsewhere. d. because accountants have traditionally input an interest cost for this item.