Strawberries, a normal good, are produced in a perfectly competitive market. Average consumer incomes increase. This will cause the individual strawberry farmer?s marginal revenue to ________ and their profit-maximizing level of output to ________.
A. increase; increase
B. increase; decrease
C. decrease; increase
D. decrease; decrease
Answer: A
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People on welfare often face the highest marginal tax rates of anyone because ______
a. of our regressive income tax system b. of the non-deducibility of state sales taxes c. of the loss of entitlement payments when earning additional income d. of increasing marginal utility of income
Suppose pigs (P) can be fed corn-based feed (C) or soybean-based feed (S) such that the production function is P = 2C + 5S. If the price of corn feed is $4 and the price of soybean feed is $5, what is the cost-minimizing feed combination producing P = 200?
a. C = 100 b. S = 40 c. C = 50, S = 20 d. C = 20, S = 50
Suppose you borrow $1,000 at 8% for 2 years. If the interest is compounded annually, how much money will you owe at the end of those 2 years?
A. $1,080.00 B. $1,160.00 C. $1,166.40 D. $1,345.60
Automatic stabilizers are the:
A. expansionary fiscal policies. B. taxes and government spending that affect fiscal policy without specific action from policymakers. C. Keynesian policies. D. fiscal policies that government actively chooses to adopt.