A key tenet of the supply-side economic theory of the 1980s was that government tax cuts would increase after-tax wages, stimulating the incentive to seek higher wages through increased labor supply
Indicate whether the statement is true or false
true
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Using the figure above, suppose with no trade Liz and Joe each produce at point A on their respective PPFs. Then, Liz suggests that they specialize and trade. She would produce only smoothies and Joe would produce only salads
Then she would sell 10 smoothies to Joe at a price of 2.5 salads per smoothie. In this scenario, A) Liz gains 5 smoothies, and Joe gains 10 smoothies. B) Liz gains 10 smoothies, and Joe loses 5 smoothies. C) Liz gains 5 smoothies and 5 salads, and Joe loses 5 salads. D) Liz gains 10 smoothies and 5 salads, and Joe gains 5 smoothies. E) Neither of the individuals gains from trade.
If net exports are negative,
A) net foreign investment is positive. B) capital inflows must be less than capital outflows. C) net foreign investment is also negative. D) Both A and B are correct.
Which of the following is the best example of a normative question?
A. Will increasing the money supply affect interest rates? B. How does the market for corn work? C. Will the redistribution of income make society better off? D. How do prices affect the market for coffee?
Suppose you compete in a Cournot oligopoly market consisting of four firms. The equilibrium market price and quantity are $8 and 20 units, respectively. The marginal cost for each firm is $4. Based on this information, we know the price elasticity of the market demand is:
A. 0.5. B. ?0.5. C. ?.25. D. There is insufficient information to answer this question.