Refer to the information provided in Figure 2.4 below to answer the question(s) that follow.
Figure 2.4According to Figure 2.4, Point A necessarily represents
A. only hybrid cars being produced.
B. an unattainable production point.
C. what society wants.
D. the economy's optimal production point.
Answer: A
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The double taxation of corporate profit in the United States refers to the fact that
A) tax rates on partnerships are very high. B) depreciation is not a deductible expense. C) corporate profit is first taxed and then any dividends paid are subject to personal income tax. D) proprietorships are not subject to any tax on earnings.
Monopolistic competitors and perfect competitors are alike in: a. facing horizontal demand curves
b. earning zero economic profit in the short run. c. earning zero economic profit in the long run. d. relying on advertising to attract buyers to their products.
If the economy is in a recession,
A. The economy suffers from structural unemployment, which can be alleviated by debt refinancing. B. Larger deficits will decrease the national debt. C. It is operating inside the production possibilities curve, and the opportunity cost of deficit spending is zero. D. Deficit spending will not increase the size of the debt because interest rates will be falling.
Suppose a consumer consumes two goods, X and Y. The slope of the budget constraint equals the
a. marginal rate of substitution. b. rate at which the consumer will give up X to gain Y while maintaining the same level of utility. c. relative price of the two goods. d. All of the above are correct.