The existence of economies of scale is one reason oligopolies exist because
A. a firm is able to increase price leading to increased profits.
B. the marginal cost decreases as output increases.
C. as output increases average total cost decreases leading to large-scale firms.
D. of strategic dependence.
Answer: C
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Suppose a central bank tries to keep exchange rates fixed. When there is an increase in the demand for foreign goods, the central bank will most likely
A) buy foreign currency in exchange for the domestic currency. B) do nothing. C) sell the domestic currency in exchange for foreign reserves. D) use foreign reserves to buy the domestic currency.
Which of the following demonstrates the income effect of a price change?
a. Sales of smartwatches rise during tax season when many consumers have tax refunds to spend. b. A store manager notes that most customers who buy a smartwatch do not purchase a second smartwatch, no matter how low the price is. c. Sales of smartwatches rise after the company introduces a new model with high utility for consumers. d. A store manager notes that when the price of the smartwatch rises, fewer consumers are interested in owning two of them.
For movements along the long-run aggregate supply curve...
What will be an ideal response?
Answer the question on the basis of the following four tax schedules for the given base of taxable income. Which of the above tax schedules is a progressive tax schedule throughout?
A. A
B. B
C. C
D. D