The more progressive the tax system, the:
A. less is the effect of crowding out on the economy.
B. greater is the severity of business fluctuations on the economy.
C. less is the built-in stability for the economy.
D. greater is the built-in stability for the economy.
Answer: D
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In the stock valuation formula "good news" affects both the numerator and denominator. Conventional wisdom on Wall Street is that the effect on the __________ is __________ the effect on the __________
A) numerator; less than; denominator B) numerator; greater than; denominator C) numerator; the same as; denominator D) None of the above.
Perfectly competitive firms are earning economic profits at a market price of $18 and an average total cost of $15. If new firms enter and increase the average total cost for all firms, the market price will ________ until ________.
A) fall; it reaches the new lower average total cost B) increase; it reaches the new higher average total cost C) fall; it reaches the new higher average total cost D) increase; economic profits are equal to zero
A monopoly misallocates resources when it
A) restricts output so that the marginal benefit of the last unit sold exceeds the marginal social cost of producing the good. B) makes an above-normal profit. C) sells the same product to different groups of customers at different prices. D) exploits scale economies.
The theory of the communists could be summed up in a single phrase: ______________________________.
Fill in the blank(s) with the appropriate word(s).