If workers are in the backward-bending section of their labor supply curves, than an increase in the income tax rate will
A) increase the tax revenue and increase the number of hours worked.
B) increase the tax revenue and decrease the number of hours worked.
C) decrease the tax revenue and increase the number of hours worked.
D) decrease the tax revenue and decrease the number of hours worked.
A
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If a firm's output more than doubles when all inputs are doubled, production is said to occur under conditions of
A) increasing returns to scale. B) imperfect competition. C) intra-industry equilibrium. D) constant returns to scale E) decreasing returns to scale.
The expansion of 2002 and beyond was due, at least in part to
a. interest rate increases. b. increases in housing wealth. c. increases in investment spending. d. large reductions in federal spending. e. increases in taxes.
When necessary, a higher price will simultaneously ________ the quantity supplied and ________ the quantity demanded, thus reducing the amount of excess ________.
A. decrease; increase; supply B. decrease; increase; demand C. increase; decrease; demand D. increase; decrease; supply
All else equal, compared to small-budget items such as paper towels, the price elasticity of demand for big-ticket items such as refrigerators is ________:
A. equal B. very low C. lower D. higher