In the classical theory of employment, a rise in the rate of interest will
A. increase saving and decrease investment.
B. decrease saving and increase investment.
C. increase saving and investment.
D. decrease saving and investment.
A. increase saving and decrease investment.
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In a Lorenz curve, perfect income equality is represented by
A) a vertical line. B) a horizontal line. C) a rectangular hyperbola. D) a 45-degree line originating from the origin.
The sales tax is a regressive tax because the:
A. percentage of income paid as taxes is constant as income rises. B. percentage of income paid as taxes falls as income rises. C. tax tends to reduce the total volume of consumption expenditures. D. administrative costs associated with the collection of the tax are relatively high.
When a firm uses a form of quantity discrimination that charges large purchasers less it is the high quantity purchasers that generate most profit
Indicate whether the statement is true or false
An industry is producing at the least-cost rate of production when:
A. Marginal cost is greater than average total cost B. Marginal revenue is greater than price C. Price and the minimum average cost are equal D. Price and marginal revenue are equal