If the government increased the income tax on the rich and increased transfer payments to the poor, the most likely result would be
a. to increase investment in the economy
b. the eradication of poverty
c. a rise in the Gini coefficient
d. an increase in the economy's rate of economic growth
e. a decline in the economy's rate of economic growth
E
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A firm faces competitive markets for its inputs and its output. Its marginal revenue product of labor
A) is increasing in the output price. B) is decreasing in the output price. C) is independent of the output price. D) has an inverted U-shape.
Briefly contrast the situation where losses will be the smallest for a perfectly competitive firm based on total revenues with another situation where losses for a perfectly competitive firm will be smallest based on marginal revenue
Which set of actions will help three oligopolistic firms to achieve joint profit maximization?
a. They decide not to cooperate, and each pursues its individual self-interest. b. They decide to collude and to trust each other not to defect from the agreement. c. They sign a cartel agreement, and then each firm cheats on it. d. They choose a dominant firm, and then they take turns being the price leader.
Capital goods are treated as ________ goods and, therefore, are ________ GDP.
A. intermediate; excluded from B. final; excluded from C. intermediate; included in D. final; included in