A change in a fixed tax will cause the consumption schedule to
A. become steeper.
B. become flatter.
C. shift in a parallel manner.
D. remain fixed as the economy moves along the schedule.
Answer: C
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A company that rewards its salespeople based on the number of sales made can expect
a. Higher sales prices b. Lower sales prices c. No sales d. All of the above
Generally, the longer the maturity on a bond, the lower the interest rate
a. True b. False
Which statement is true?
A. The United States' economic system leads to an equitable distribution of income. B. One of the basic functions of the United States' government is to transfer some income from the rich and the middle class to the poor. C. The price mechanism and the definition of economics are incompatible. D. None of the statements are true.
The law of diminishing returns applies to which of the following segments of the marginal product of labor curve?
a. The point where labor input is zero. b. The downward-sloping segment only. c. The entire curve. d. The upward sloping segment only.