Since empirical tests of the HO theory have given mixed results, the theory has little value
Indicate whether the statement is true or false
FALSE
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Capital gains are
A. the amount of income a taxpayer has after taxes are paid. B. total sales prices from assets. C. any profit you have from asset sales. D. total net income from all sources.
If a firm refuses to hire any minorities due to a personal prejudice, its profits will
a. not be affected. b. increase slightly. c. increase markedly. d. decrease.
Suppose you operate in a monopolistically competitive market. If you sell your good at a price of $20 and your average cost of production is $15:
A. your market may be in long-run equilibrium. B. you cannot be in short-run equilibrium. C. you should expect competing firms to enter your market and shift the demand curve for your good to the left. D. you should expect competing firms to enter your market and shift the demand curve for your good to the right.
A recession often begins with a(n) ________ in spending by firms on capital goods and a(n) ________ in spending on durable goods by households
A) increase; decrease B) increase; increase C) decrease; increase D) decrease; decrease