Which of the following is most likely to reduce the consumption of an exhaustible natural resource?
a. a decrease in monopoly control of the market for the resource
b. government tax policies that give tax breaks to entrepreneurs who search for new reserves of the resource
c. implementation of a price ceiling for the resource below its equilibrium price
d. government macroeconomic policies that lower the interest rate on bonds
c
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The feature of the above figure that indicates that the firm is a perfectly competitive firm is the
A) shape of the total cost curve. B) shape of the total revenue curve. C) fact that the total cost and total revenue curves are farthest apart at output is Q2. D) fact that the total cost and total revenue curves cross twice.
Other things equal, monetary policy to offset a contractionary gap will tend to
a. Increase the money supply and lower interest rates b. Increase the money supply and increase interest rates c. Decrease the money supply and lower interest rates d. Decrease the money supply and increase interest rates
In order to finance the U.S. current account deficit, we must
A. increase the income tax rate. B. increase government spending. C. run a surplus in the capital account. D. decrease the income tax rate.
In the long run, a firm has
A) no factors of production that are fixed. B) no factors of production that are variable. C) no factors of production that are either fixed or variable. D) fixed factors of production but no variable resources.