________ analysis by economists refers to the attempt to answer questions such as what are the effects of a tax on production and consumption decisions
A) Positive
B) Negative
C) Normative
D) Investigative
A
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The above figure shows the payoff for two firms, A and B, that must each choose to sell either at a high or low price. Determine the dominant strategies for each firm (if any) and the Nash equilibria (if any)
What will be an ideal response?
Suppose that each worker must use only one shovel to dig a trench, and shovels are useless by themselves. In the long run, the firm will experience
A) increasing returns to scale. B) constant returns to scale. C) decreasing returns to scale. D) The returns to scale cannot be determined from the information provided.
The notion that similar taxpayers should pay similar amounts of taxes is known as
a. vertical equity. b. the benefits principle. c. horizontal equity. d. taxpayer efficiency.
Variables X and Y are directly related if:
A. Y decreases while X increases. B. for every one unit increase in X there is the same decrease in Y. C. for every one unit increase in x there is a larger change in Y. D. Y increases whenever X increases.