Suppose Congress increases the corporate profit tax rates. This is an example of
A) discretionary fiscal policy of the expansionary variety.
B) automatic fiscal policy of the expansionary variety.
C) discretionary fiscal policy of the contractionary variety.
D) automatic fiscal policy of the contractionary variety.
Ans: C) discretionary fiscal policy of the contractionary variety.
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Recall the Application about the attempt to form a salt cartel in the 19th century to answer the following question(s).According to the Application, what was the objective of firms when they created salt pools?
A. To decrease competition and keep prices uniformly high. B. To decrease competition and keep prices uniformly low. C. To lobby the state governments to prevent salt from other states to enter. D. To give support to financially troubled salt mines.
In the long run:
A) all factors of production are fixed. B) only some inputs of a firm can be changed. C) all firms earn positive economic profits. D) all factors of production can be changed.
What role does the invisible hand play when two firms are producing in the same competitive industry?
What will be an ideal response?
The cross price elasticity of demand for a good x is the percentage change in the quantity demanded of good x in response to a given percentage change in
A) income. B) the price of good x. C) the price of good y. D) the quantity demanded of good y.