An economy with an expansionary gap will, in the absence of stabilization policy, eventually experience a(n) ________ in the inflation rate, leading to a(n) ________ in output.
A. decrease; increase
B. increase; increase
C. decrease; decrease
D. increase; decrease
Answer: D
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The total revenue from the sale of a good or service is calculated by multiplying the price paid by the number of units sold
Indicate whether the statement is true or false
The total welfare cost of a monopoly that engages in rent-seeking activities
a. equals only the portion of lost consumer surplus that is not transferred to the monopolist b. includes the use of resources devoted to rent seeking c. equals the total reduction in consumer surplus d. equals the total economic profit earned by the monopolist e. excludes the use of resources devoted to rent seeking
If a government tax has as its purpose the raising of revenue, it would be best to place the tax on a product which:
a. is a non-essential. b. has a highly elastic demand. c. has many good substitutes. d. has a highly inelastic demand. e. has a unit elastic demand curve.
The corporate form of business allows a more efficient way to manage risk relative to
A) proprietorships. B) partnerships. C) other non-corporate forms of business. D) all of these choices.