Suppose 3M pays a dividend of $2 per share which the investor is expected to receive immediately. The dividend is expected to grow by 5% per year and the investor has a required rate of return of 8%

Which of the following is likely to happen if the government raises tax rates?

A) Unemployment will fall. B) Investment will increase. C) Price level will rise. D) Consumption will decrease.

A perfectly competitive firm earns an economic profit when:

a. price is above average variable cost. b. price is above average total cost. c. total cost exceeds total revenue. d. total variable cost exceeds total revenue.