If the economy is in a recession, which point in the graph shown would likely represent this?
A. E1
B. E2
C. E3
D. E4
Answer: B
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Interlace, Inc produces and a unique soda. The company cannot price discriminate. The figure above shows Interlace's demand curve, marginal revenue curve, and marginal cost curve
The quantity of soda Interlace Inc will choose to produce is ________ because when this quantity is produced, ________. A) efficient; marginal social benefit exceeds marginal social cost B) efficient; marginal social benefit equals marginal social cost C) not efficient; marginal social benefit exceeds marginal social cost D) not efficient; marginal social benefit equals marginal social cost
Which of the following can be categorized under fiscal policy?
a. Increase in money supply b. Decrease in money supply c. Increase in federal funds rate d. Decrease in reserve requirement e. Increase in tax rates
Both the multiplier effect and the investment accelerator tend to make the aggregate-demand curve shift further than it does due to an initial increase in government expenditures
a. True b. False Indicate whether the statement is true or false
When the government levies a tax on a corporation,
a. all the burden of the tax ultimately falls on the corporation's owners. b. the corporation is more like a tax collector than a taxpayer. c. output must increase to compensate for reduced profits. d. less deadweight loss will occur since corporations are entities and not people who respond to incentives.