Transfer payments include
A) open market sales. B) Social Security.
C) consumption taxes. D) dividends.
B
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The big-push strategy of development relies mainly on private incentives and a laissez- faire government policy
Indicate whether the statement is true or false
Suppose there are only two steel firms in the steel industry and their prices are equal to or very close to their ATCs. This circumstance suggests that
a. steel firms are not profit maximizing b. steel has no close substitutes c. the demand for steel is weak d. quantity supplied is less than quantity demanded at the market prices e. close substitutes are produced in other industries
At the consumer's optimum
a. the budget constraint will have a slope of MUx/Px. b. it is still possible for the consumer to increase his consumption of both goods. c. the indifference curve will intersect the budget constraint at the midpoint of the budget constraint. d. the slope of the indifference curve is equal to the slope of the budget constraint.
Consider a color-blind firm that is currently maximizing profits. An affirmative action policy is put in place requiring that all firms in the industry abide by a certain quota. Which of the following will occur?
A. The firm will have to fire some workers. B. If the firm currently meets the required quota, it will cut costs by adjusting labor to exactly meet the affirmative action requirements. C. The firm will have to start hiring some workers that it would prefer not to. D. If the firm currently meets the quota, it will begin to lose profits due to the affirmative action requirements. E. If the quota is already met, the firm will make no changes in its hiring practices.