If the total costs of producing 1,500 units of output is $15,000 and this output sold to consumers for a total of $16,500, then the firm would earn profits of:
A. $1,000
B. $16,500
C. $1,500
D. $15,000
Answer: C
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Supply-side economists argued that, given existing tax laws, the high inflation of the 1970s
a. lowered the effective tax rate on corporate income. b. did not have any effect on the aggregate supply curve. c. raised the effective tax rate on corporate income. d. may have raised but probably lowered the effective tax rate on corporate income. e. both b and c.
One way tariffs differ from quotas is that
A) tariffs produce revenues for the importing country's government. B) quotas produce revenues for the exporting country's government. C) tariffs produce no revenues but set limits on the imported items. D) tariffs are applied only on raw materials.
The consumption function has a negative slope
a. True b. False Indicate whether the statement is true or false
Which of the following is generally considered a desirable outcome of fiscal policy?
A. Greater deficits. B. A higher price level. C. Higher unemployment rates. D. More jobs.