A monopolistic competitor behaving in a profit-maximizing way will
A) not advertise.
B) advertise as much as it can in order to increase its sales.
C) advertise to the point where the additional sales from advertising equal the additional marginal costs of the product.
D) advertise to the point where the additional revenue from one more dollar of advertising just equals the extra dollar cost of advertising.
D
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How does a decrease in government spending affect the aggregate expenditure line?
A) It increases the slope of the aggregate expenditure line. B) It shifts the aggregate expenditure line downward. C) It decreases the slope of the aggregate expenditure line. D) It shifts the aggregate expenditure line upward.
A tax of a specific absolute sum levied on every person in the nation is called a(n)
a. income tax b. proportional tax c. progressive tax d. equitable tax e. poll tax
Based on the following information, what is the balance on the current account?
Exports of goods and services = $12 billion
Imports of goods and services= $14 billion
Net income on investments = -$4 billion
Net transfers = -$1 billion
Increase in foreign holdings of assets in the United States = $6 billion
Increase in U.S. holdings of assets in foreign countries = -$3 billion
A) -$7 Billion
B) -$3 billion
C) -$2 billion
D $1 billion
Assume Congress decides that Social Security taxes must increase in order to fund the system. This would
A) shift up the marginal cost curve for any firms that hire labor. B) guarantee a decrease in profits. C) shift up the average fixed cost curve for any firms that hire labor. D) guarantee an increase in tax revenues.