If ATC is rising, MC
A. must be below ATC.
B. may be below ATC.
C. must be above ATC.
C. must be above ATC.
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The above figure shows the isoquants for producing steel. Increasing returns to scale are
A) present when producing less than 10,000 tons. B) present when producing less than 20,000 tons. C) present when producing less than 30,000 tons. D) never present.
Suppose George's income is $10,000 and he pays a tax of $1,000 . but Laura's income is $50,000 and she pays a tax of $4,000 . Such a tax is:
a. regressive. b. progressive. c. proportional. d. flat.
A tariff on a particular good does which of the following?
A. It increases the net-of-tariff price received by foreign producers. B. It increases the price of the good to domestic consumers. C. It redistributes income away from domestic producers toward domestic consumers. D. none of the above
If the marginal propensity to consume (MPC) is 0.75, a $50 decrease in government spending, other things being equal, would cause equilibrium real GDP to:
A. increase by $50. B. decrease by $50. C. increase by $200. D. decrease by $200.