Supply-side tax cuts designed to increase investment spending are attractive in theory, but in practice
A. the effect is the opposite of what theory suggests.
B. are less useful, because they take a long time to increase the capital stock.
C. they have no effect on the capital stock in the short or long run.
D. are powerful in the short run as capital stock rapidly increases, but the effect tapers off in the long run.
Answer: B
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In a perfectly competitive industry, i. entry by new firms shifts the market supply curve rightward. ii. exit by existing firms shifts the market supply curve leftward. iii. at all times existing firms make only zero economic profit
A) ii and iii B) ii only C) i and iii D) i and ii E) i, ii, and iii
A measure of all the satisfaction you receive from all the coffee that you consume is your
A) marginal utility of coffee. B) marginal utility per dollar spent on coffee. C) total utility from coffee. D) marginal utility per dollar spent on coffee when you are in your consumer equilibrium.
The European Commission is comprised of ________.
A) 20 people, two people from each of the member countries B) 56 people, two people from each of the member countries C) 28 people, one person from each of the member countries D) 12 people, one person from each of the member countries
The amount of corruption that occurs in a government is hard to measure because:
A. it is illegal, and therefore hidden. B. the benefits subtracted from the costs often go to a small number of people and distort the reality. C. its costs are mostly indirect and nearly impossible to measure. D. All of these are true.