Most economists believe that a cut in tax rates
a. would generally increase government tax revenue.
b. would have no effect on aggregate demand.
c. has a relatively small effect on the aggregate-supply curve.
d. All of the above are correct.
c
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If the percentage change in the quantity demanded of a good is less than the percentage change in price, price elasticity of demand is:
a. elastic. b. inelastic. c. perfectly inelastic. d. unitary elastic.
A monopolist faces a demand curve given by P = 20 - Q and has total costs given by TC = Q2. By using a bit of calculus, you should be able to determine that the firm's marginal revenue is MR = 20 - 2Q and its marginal cost is MC = 2Q. Now suppose that the country in which this monopolist is located decides to engage in international trade. The world price of the product produced by the monopolist is $12. The profit-maximizing output level is 6, and the profit-maximizing price equals $12. What are its monopoly profits at this price and quantity?
a. $25 b. $36 c. $50 d. $75
Which one of the following is a positive economic statement?
A. An increase in the minimum wage will reduce employment for teenagers. B. The minimum wage should be increased. C. Social justice will be served by increasing the minimum wage. D. Thoughtful people oppose an increase in the minimum wage.
A macroeconomic surplus occurs when consumers reduce their consumption expenditures and increase their saving
a. True b. False Indicate whether the statement is true or false