The country of Doomsville is currently in a recession. The government of Doomsville, in an effort to maintain its tax revenues in a time when incomes are falling, decides to increase the tax rate. Would this policy help or hurt the recession?
A) This policy would likely help Doomsville recover faster.
B) This policy would likely make Doomsville's recession worse.
C) This policy would likely have no effect on Doomsville's economy.
D) This policy would have an unknown effect on Doomsville's economy.
Ans: B) This policy would likely make Doomsville's recession worse.
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Suppose the price of leather used to produce shoes increases. The higher price of leather ________ the supply of shoes, and the supply curve of shoes ________
A) does not change; does not shift B) decreases; shifts rightward C) increases; shifts rightward D) increases; shifts leftward E) decreases; shifts leftward
A monopolist increases output from 4 to 5 units. His total revenue increases from $2,750 to $3,600 . Which of the following inferences is true? a. The marginal revenue from the 4th unit is $850
b. The marginal revenue from the 5th unit is $850. c. The total cost of producing the 5th unit is $850. d. The profit earned from producing the 5th unit is $850.
Sam, who owns a carpentry shop, discovered that with 4 laborers he could produce 18 cabinets per day. With 5 laborers he produced 25 cabinets and with 6 laborers he produced 36 cabinets. What was the MPP of the 6th laborer?
A. 11 cabinets B. 9 cabinets C. 7 cabinets D. 36 cabinets
Refer to the information provided in Figure 2.4 below to answer the question(s) that follow.
Figure 2.4According to Figure 2.4, Point A necessarily represents
A. only hybrid cars being produced. B. an unattainable production point. C. what society wants. D. the economy's optimal production point.