Which of the following changes in taxes would lead to the greatest increase in consumption?
a. a $20,000 decrease in taxes, if MPC equals 0.5
b. a $12,000 decrease in taxes, if MPC equals 0.75
c. a $15,000 decrease in taxes, if MPC equals 0.6
d. a $30,000 decrease in taxes, if MPC equals 0.25
a
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The table above gives the production possibilities frontier for two countries, Anaconda and Bear. The opportunity cost of moving from production point B to production point C for Anaconda equals ________ and for Bear equals ________
A) 50 pairs of shoes; 100 pairs of shoes B) 100 pairs of shoes; 200 pairs of shoes C) 1 ton of corn; 1 ton of corn D) 550 pairs of shoes; 700 pairs of shoes E) 650 pairs of shoes; 900 pairs of shoes
At outputs less than the minimum of average variable cost:
a. marginal cost is greater than average variable cost. b. marginal cost is less than average variable cost. c. marginal cost is equal to average variable cost. d. marginal cost is parallel to average variable cost.