An increase in the effective corporate tax rate due to increased inflation results in
a. a upward shift of the investment schedule.
b. a downward shift of the investment schedule.
c. no shift of the investment schedule.
d. a rightward shift of the saving schedule.
B
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What will be an ideal response?
In a small economy, gross investment is $1,500, consumption spending is $6,000, net investment is $200, government spending is $1,500, exports are $2,000 and imports are $1,000. What is GDP for this economy?
A) $10,700 B) $10,300 C) $10,200 D) $10,000
If a market is controlled by one perfect price discriminator who is able to charge each consumer the highest price that consumer is willing to pay, the seller will produce output until the price paid by the last consumer is equal to the marginal cost
of making the good. That is, the price of the last good equals the marginal cost of making the good. If welfare is measured as consumer surplus plus producer surplus, compare this market structure to a competitive market in terms of efficiency and equity.
The demand curve for Japanese yen is downward sloping because when the exchange rate (dollars per yen) falls,
a. Japanese goods become cheaper so foreigners buy more of them and need more yen to do so b. foreigners need more dollars to buy one yen so they can now afford more Japanese goods c. the demand curve for yen shifts to the right as foreigners buy more Japanese goods d. foreign goods become cheaper so Japanese buy more of them and need more yen to do so e. the supply of yen increases in response to people demanding more yen