As a general rule, when an income tax is added to the basic macroeconomic model, what happens to the consumption schedule?
a. It will shift downward.
b. It will shift upward.
c. It will become flatter.
d. It will become steeper.
c
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The production possibilities frontier can show a manufacturer’s possible combinations of output resulting from the combination of two goods.
Answer the following statement true (T) or false (F)
What will be the principal and most immediate effect on the supply or demand for raw cotton grown in the United States if the demand for peanuts (which can be grown on cotton land) increases?
A) Decrease in demand B) Decrease in supply C) Increase in demand D) Increase in supply
When considering setting the transfer price at the market price of a product similar to the intermediate good that is already available on the market
a. It is appropriate to ignore that the market price includes a margin above marginal cost b. It is OK if the product on the market includes costly features your downstream division does not use c. it is OK if the product on the market is inexpensive because its quality is lower than you use d. if it is similar enough, it calls into question whether there are gains from producing it in-house
An aggregate supply curve indicates the quantities of real GDP supplied at different ______ levels.
a. interest rate b. wage c. price d. stock market