When a tax is imposed in a market, it will
a. alter the behavior of buyers
b. alter the behavior of sellers.
c. have no effect on the behavior or either buyers or sellers.
d. affect the behavior of both buyers and sellers.
d
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The business cycle refers to
A) fluctuations in the level of real GDP around potential GDP. B) changes in the level of nominal GDP. C) changes in the level of the stock market. D) changes in the level of employment.
A manager invests $400,00 . in a technology to reduce overall costs of production. The company managed to reduce their cost per unit from $2 to $1.85 . Ceteris peribus, if the firm continues its production in the same economic environment, the firms economic profits should
a. increase b. decrease c. stay the same d. increase as long as the investment does not generate implicit costs that are greater than $0.15 per unit
Long-run economic growth can occur as the result of
A. A technological advance. B. A rightward shift in aggregate demand. C. The employment of more of the available resources. D. An increase in the price level.
Average variable and average total costs get farther apart as output decreases because ________ as output decreases.
A. total and total variable costs get farther apart B. diminishing returns set in C. marginal costs increase D. average fixed costs increase