A decrease in taxes will cause
A. AD to increase (move to the right).
B. AS to increase (move down and to the right).
C. AS to decrease (move up and to the left).
D. AD to decrease (move to the left).
Answer: A
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Use the data in the table above and suppose that labor is the only variable factor of production. If each worker is paid $42.00 per day, what is the average variable cost to Decent Donuts of producing 122 dozen donuts per day?
A) $1.91 B) $2.16 C) $2.41 D) $3.06
The current role of the International Monetary Fund is one of
a. supervising a system of fixed exchange rates. b. providing assistance to countries with currency or debt problems. c. setting exchange rates based on a gold exchange standard. d. acting as a lender of last resort to central banks.
From 1935 to 1950, inequality of money income was ______.
a. holding steady b. rising c. dropping d. worse than today
State and local governments subsidize college students with grants and low-interest loans. The loans and subsidies are examples of
A) positive externalities. B) Coase subsidies. C) Pigovian subsidies. D) emission allowances.