What would happen if three more restaurants opened in a small town where only four restaurants were open for business originally?
A. People would pay higher prices to eat out.
B. The town would raise significantly more taxes.
C. The restaurants would become more like a competitive market.
D. The restaurants would form a cartel in the town.
Answer: C
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If a person were in the 15% tax bracket and given the choice of a $500 credit or a $2500 deduction,
A. he would not qualify for either. B. he would not care. They would constitute the same tax benefit. C. he would take the credit every time. D. he would take the deduction every time.
Which of the following statements is true?
A) Currency in circulation in any economy is likely to be equal to the total money supply in the economy. B) Currency in circulation in any economy is likely to be less than the total money supply in the economy. C) In the United States, currency in circulation accounts for less than 1% of the money supply. D) In the United States, currency in circulation accounts for more than 50% of the total money supply.
Whenever a firm is making positive economic profit, there is nothing it can do to make more profit.
Answer the following statement true (T) or false (F)
The optimal time for the implementation of contractionary fiscal policy would be
a. before inflation accelerated. b. after inflation accelerated. c. after unemployment increased. d. after the price level had risen significantly.