In Figure 1 above if the economy were at Y3 then we would expect there to be:
A. an increase in consumption spending.
B. a reduction in inventories.
C. an increase in inventories.
D. no change in inventories.
Answer: C
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A tax collects $3,000 per year from a family with an income of $25,000 and takes $4,000 per year from a family with an income of $50,000 . This tax plan is
a. regressive b. proportional c. progressive d. based on the ability-to-pay principle e. impossible to determine with the information provided
In the circular flow diagram, money flows from firms to households through the
a. product market b. payments market c. goods market d. services market e. resource market
How did the AFL feel about unskilled noncraft workers?
a. It was threatened by their low wages. b. It felt sympathy for them. c. It was unconcerned about them. d. It hoped to make them new members. e. It resented their high MRP.
In the above table, the marginal cost of the seventh unit is
A. $5.00. B. $3.00. C. $4.00. D. $33.00.