Ceteris paribus, in the long run, a tax placed on a perfectly competitive industry will
A. be borne entirely by the firm.
B. be entirely borne by the consumer.
C. increase the price of the good by an amount less than the tax.
D. increase the price of the good by an amount equal to the tax.
Answer: D
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Current income minus spending on current needs equals:
A. transfers. B. wealth. C. saving. D. investment.
When both the demand for a good increases and the supply of the good increases, the equilibrium quantity definitely increases
Indicate whether the statement is true or false
A corporate bond is not as liquid as cash because the bond
A) cannot be converted to spendable dollars either until it matures or is sold to another investor. B) can be exchanged only for the goods or services produced by the company that issued the bond. C) must be exchanged for a stock certificate before it can be converted to spendable funds. D) represents an exchange for gold only.
For a perfectly competitive firm, average revenue is: a. equal to marginal cost at all levels of output
b. equal to marginal revenue at all levels of output. c. equal to price at all levels of output. d. characterized by both (b) and (c).