An income tax increase in the Virgin Islands will cause the Islands'
a. consumption curve to shift downward
b. consumption curve to shift upward
c. investment curve to shift upward
d. investment curve to shift downward
e. economy to move to the right along its current investment curve
A
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The presence of a positive externality in a market leads to ________
A) an underproduction of the good B) an overproduction of the good C) a deadweight loss D) a fall in the consumer surplus
The marginal product of any input into the production process:
A. is the increase in output that is generated by an additional unit of input. B. is the decrease in input that is generated by an additional unit of output. C. is the constant ratio of inputs to outputs. D. None of these is true.
Suppose the market for autoworkers is initially in equilibrium, but then the automakers purchase capital goods that are a substitute for workers. What happens in the market for autoworkers?
A. The equilibrium wage rate will decrease and the equilibrium quantity of labor will increase. B. The equilibrium wage rate will increase and the equilibrium quantity of labor will decrease. C. The equilibrium wage rate and the equilibrium quantity of labor will both decrease. D. The equilibrium wage rate and the equilibrium quantity of labor will both increase.
Refer to the information provided in Figure 16.2 below to answer the question(s) that follow.
Figure 16.2Refer to Figure 16.2. The ________ amount of cars is 35.
A. break-even B. subsidized C. unregulated D. efficient