Refer to Scenario 7.7 below to answer the question(s) that follow. SCENARIO 7.7: A lawn service company has the following production possibilities. With one, two, three, and four workers, the company can mow 4, 9, 12, and 14 lawns per day, respectively. Refer to Scenario 7.7. The marginal product of the fourth worker is
A. 2.
B. 3.
C. 12.
D. 14.
Answer: A
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A government that generates revenue mostly through an inflation tax faces the risk of:
A) rapidly falling prices. B) hyperinflation. C) mass tax evasion. D) a sudden fall in revenue.
Under a proportional tax, the fraction of income paid in taxes
A. rises as income rises. B. is unchanged as income changes. C. falls as income rises. D. is proportional to the change in income.
Money has replaced the need to barter, which is:
A. something you can directly offer, like any good or service, in exchange for some good or service you want. B. something you can use to purchase goods and services. C. a certain amount of purchasing power that it retains over time. D. a standard unit of comparison.
Which of the following exist(s) in a command economy but not in a market economy?
a. Property rights for individuals b. Land, labor, capital, and entrepreneurship c. Plenty of incentives to motivates firms to produce what consumers need d. An absence of long lines of customers at shops e. A central authority making production and consumption decisions