In the debate between the critics and defenders of advertising, what conclusion have policymakers come to regarding the effect of advertising on competition - advertising makes markets more competitive or less competitive?
more competitive
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Which of the following would be considered a fiscal policy action?
A) Spending on the war in Afghanistan is increased to promote homeland security. B) Tax incentives are offered to encourage the purchase of fuel efficient cars. C) A tax cut is designed to stimulate spending during a recession. D) The Fed increases the money supply.
Total product is maximized where
A) average product is maximized. B) marginal product is maximized. C) average product is equal to 0. D) marginal product is equal to 0.
If, as a firm increases its rate of output, total cost increases as well,
a. profit cannot be maximized b. revenue cannot be maximized c. cost cannot be minimized d. marginal cost is increasing e. marginal cost is positive
Which of the following correctly describes the Lorenz curve?
a. The Lorenz curve shows that the increasing income inequality in the U.S. society is actually good for the economy. b. The Lorenz curve shows the growth rate in real median family income over time. c. The Lorenz curve shows the cumulative distribution of family income, ranked from the poorest to the richest families, and compares that curve with the straight line indicating perfectly equal income distribution. d. The Lorenz curve shows the cumulative distribution of family income, ranked from the richest to the poorest families, and compares that curve with the ideal of having all income go to the richest 5 percent of society.