In the traditional Keynesian model, an increase in current taxes
A) increases disposable income but does not affect consumption.
B) decreases both disposable income and consumption.
C) decreases disposable income but increases consumption.
D) has no effect on either disposable income or consumption.
B
Economics
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Why must long-run equilibrium in monopolistic competition occur at the point at which the demand curve is tangent to the average total cost curve?
What will be an ideal response?
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If a country has a lower opportunity cost of producing oranges, then this is:
a. inefficient resource use. b. an absolute advantage. c. a tariff. d. a comparative advantage. e. a situation where oranges should be imported.
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