There is an inverse relationship between the price-cost margin and the level of competition in a particular industry
Indicate whether the statement is true or false
TRUE
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Making rational decisions "at the margin" means that people
a. make those decisions that do not impose a marginal cost. b. evaluate how easily a decision can be reversed if problems arise. c. compare the marginal costs and marginal benefits of each decision. d. always calculate the dollar costs for each decision.
A regressive tax is one in which the average tax rate falls as income rises.
Answer the following statement true (T) or false (F)
________ refers to the reduction in economic surplus resulting from not being in competitive equilibrium
A) Producer atrophy B) Deadweight loss C) Economic shortage D) Marginal cost
The tax multiplier is most likely to be larger than the expenditure multiplier when ________
A) monetary policy is at the zero lower bound B) rising inflation causes the real interest rate to decline C) when the change in tax revenue is large relative to the change in government purchases D) the expansionary fiscal policy is expected to be followed by higher taxes