Assume Congress decides that Social Security taxes must increase in order to fund the system. This would
A) shift up the marginal cost curve for any firms that hire labor.
B) guarantee a decrease in profits.
C) shift up the average fixed cost curve for any firms that hire labor.
D) guarantee an increase in tax revenues.
A
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If a monopolistically competitive firm lowers its price and, as a result, its total revenue decreases then
A) the output effect of the price change was less than the price effect. B) the output effect of the price change was greater than the price effect. C) the substitution effect of the price change was greater than the income effect. D) the firm's demand curve must have decreased.
How can the Cambridge equation be restated according to Friedman's money demand theory?
a. Md = k(rB, rE, rD)Py b. Md = k/Py(rB, rE, rD) c. Md = Py/k(rB, rE, rD) d. Md = (rB, rE, rD)Py/k
The demand curve of a commodity slopes downward because of:
a. the insatiable nature of human wants. b. the presence of double coincidence of wants. c. the law of demand. d. the scarcity of goods and services in an economy. e. the law of diminishing marginal utility.
The federal budget deficits of the 1980s
A. are about the same as those of earlier decades. B. caused the government debt to increase in absolute terms but not as a percent of GDP. C. were due to the persistent recession that occurred throughout the 1980s. D. were caused by rising expenditures and tax cuts.