_____ when net taxes are reduced.
What will be an ideal response?
Consumption rises
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The Taylor rule says that the ________, the lower the federal funds rate
A) higher the volume of bank reserves B) higher the inflation rate C) lower the output gap D) higher the supply of money
In a competitive market, a negative externality creates a deadweight loss because
A) the cost of the externality is double counted. B) a harm is generated. C) price equals social marginal cost. D) price equals private marginal cost.
In an increasing-cost industry, expansion of output
A) causes input prices to rise as demand for them grows. B) leaves input prices constant as input demand grows. C) causes economies of scale to occur. D) occurs under conditions of increasing returns to scale. E) occurs without diminishing marginal product.
What can you deduce about the type of good Patty’s Pizza is and about the relationship between Patty’s Pizza and Sue’s Subs?
Suppose that when the average college students income is $10,000 per year, the annual quantity demanded of Patty's Pizza is 50 and the annual quantity demanded of Sue's Subs is 80. Suppose that when the price of Patty's Pizza increases from $8 to $10 per pie, the quantity demanded of Sue's Subs increases from 80 to 100. Suppose also that when the average student's income increases to $12,000 per year, the annual quantity demanded of Patty's Pizza increases from 50 to 60 a) Patty's Pizza is a normal good and Patty's Pizza and Sue's Subs are substitutes b) Patty's Pizza is a normal good and Patty's Pizza and Sue's Subs are complements c) Patty's Pizza is an inferior good and Patty's Pizza and Sue's Subs are substitutes d) Patty's Pizza is an inferior good and Patty's Pizza and Sue's Subs are complements