All else equal, an increase in the rate of inflation ________ planned spending and ________ short-run equilibrium output.
A. decreases; decreases
B. increases; decreases
C. decreases; increases
D. increases; increases
Answer: A
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Corporate profits are
a. included in payroll taxes. b. exempt from taxes. c. taxed twice, once as profit and once as dividends. d. taxed to pay for Medicare.
Consumption is a function of _____.
Fill in the blank(s) with the appropriate word(s).
All of the following are characteristics of an oligopoly EXCEPT
A) diseconomies of scale over all ranges of output. B) small number of firms. C) high barriers to entry. D) interdependence.
The marginal products of the first, second, and third workers are 50, 34, and 22, respectively. If four workers can produce 116 units of output, then the marginal product of the fourth worker is
A. 10. B. 12. C. 22. D. 116.