The price of a magazine is $2, the price of a novel is $5, and the consumer has $33. According to the above table, the rational consumer will purchase
A. 4 magazines and 5 novels.
B. 5 magazines and 6 novels.
C. 1 magazine and 2 novels.
D. 2 magazines and 3 novels.
Answer: A
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The goal of the firm is
A) low labor turnover. B) to maximize sales. C) to minimize costs. D) profit maximization.
Whether we look at marginal tax rates or average tax rates, the U.S. income tax is
a. progressive b. based on the benefits received c. proportional d. regressive e. All of the answers are correct.
Because of automatic stabilizers, _____
a. fiscal policy focuses on maintaining an annually balanced budget b. planning discretionary fiscal measures to reduce economic fluctuations is easy c. government budget deficits are zero if averaged out over the entire business cycle d. policy makers should be concerned less with balancing the budget annually e. government budget deficits are smaller during expansions and larger during contractions
If both market demand and supply increase simultaneously by the same magnitudes, then equilibrium quantity will (be) ____ and equilibrium price will (be) ____
a. Not change; decrease b. increase; increase c. increase; not change d. None of the above are correct