Contractionary policies are policies designed to
A) increase the level of real GDP. B) increase the federal deficit.
C) reduce the level of real GDP. D) increase government spending.
C
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If the government wants to decrease the quantity consumed of alcohol by 20%, what percentage of tax would they have to levy on alcohol consumption?
a. 20% b. 30% c. 40% d. 50%
The manager of Greene Enterprises, Inc., recently estimated its average variable cost (AVC) function to beAVC = 88 - 0.026Q + 0.000003Q2Greene Enterprises faces total fixed costs (TFC) of $300,000. What is total variable cost (TVC) at Greene Enterprises when average variable cost (AVC) is at its minimum?
A. $137,222 B. $101,101 C. $48,000 D. $437,212 E. $190,476
Bars often offer specials on appetizers during "happy hour." What does the concept of price discrimination suggest about why this might be profit-maximizing behavior?
What will be an ideal response?
Suppose the supply of labor schedule increases in a perfectly competitive labor market while the market demand schedule remains unchanged. A profit-maximizing representative firm will
A. hire fewer workers. B. hire the same number of workers. C. substitute capital for labor. D. hire more workers.