A proportional income tax is a tax that taxes income at a constant rate
Indicate whether the statement is true or false
TRUE
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The ________ in output due to each additional unit of a factor of production is ________ when other factors are held constant
A) increase; smaller B) decrease; larger C) increase; larger D) decrease; smaller
If a good is an inferior good, then its
A) demand curve will be upward sloping. B) income effect reinforces the substitution effect. C) income elasticity is negative. D) Engel curve cannot be drawn.
If a firm's MRP of capital > MFC, the firm should
a. lower the interest rate b. decrease its quantity demanded of loanable funds c. increase its quantity demanded of loanable funds d. hire more labor e. raise the interest rate
Since its beginning, the cable television industry has been viewed as a natural monopoly. Typically, cities would grant individual firms local monopolies and then regulate them. Is this a valid approach from an economic perspective? What do you expect the future of the television-viewing market to hold?