In the mid-1980s, the salaries of accounting professors with Ph.D.s increased dramatically. This resulted in an increase in enrollments in Ph.D. accounting programs. Since a Ph.D. degree in accounting may take at least four years to complete, the short-run elasticity of supply of accounting professors is
A) greater than the long-run-elasticity of supply.
B) less than the long-run elasticity of supply.
C) equal to the long-run elasticity of supply.
D) equal to the short-run elasticity of demand.
B
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Answer the next question on the basis of the following four tax schedules for the given base of taxable income.IncomeTax ATax BTax CTax D$10,000$650$1,000$500$1,00020,0008502,0001,0003,00030,0009504,0001,5006,00040,0001,0506,0002,0009,500Which of the above tax schedules is a proportional tax schedule throughout?
A. Tax A B. Tax B C. Tax C D. Tax D
What is the aggregate demand curve and what does it represent?
What will be an ideal response?
If the intended aim of the price floor set in the graph shown was a net increase in the well-being of producers, then positive analysis would have us consider:
A. the policy to be effective if area C is larger than area E.
B. the policy to be effective if area E + B is larger than C +D + F.
C. the policy to be ineffective if area B is larger than area E.
D. the policy to be ineffective if area E + B is larger than A+C+D+ F.
If fiscal policy is used to close an expansionary gap, the _____
a. short-run aggregate supply curve shifts leftward and the price level falls b. short-run aggregate supply curve shifts rightward and the price level increases c. short-run aggregate supply curve shifts rightward and the price level falls d. aggregate demand curve shifts leftward and the price level falls e. aggregate demand curve shifts rightward and the price level falls