A policy of average-cost pricing will initially ________ price for a natural monopoly, but as costs increase, price will ________.
A. increase; not change
B. decrease; increase
C. decrease; not change
D. increase; decrease
Answer: B
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What will be an ideal response?
In reference to the federal income tax system, a tax bracket is
A) the income range within which a tax rate applies. B) the estimated amount of federal income tax firms withhold from their employees' paychecks. C) the formula the federal government uses to determine the dollar amount of the personal exemption and the amounts taxpayers are allowed for deductions from their incomes. D) used to determine the average tax rate.
A decrease in autonomous consumption ________
A) lowers planned expenditures B) raises equilibrium output for any level of the interest rate C) causes a movement down along the IS curve D) all of the above E) none of the above
Why is the supply of oil more price elastic in the long run?
A) New deposits are found. B) Better extraction technology is developed. C) Firms have the ability to change the amount of all inputs. D) All of the above.