The curve that best helps a firm determine which output level will maximize profits is the
a. total product curve
b. marginal product curve
c. average total cost curve
d. marginal cost curve
e. average variable cost curve
D
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Swaps differ from futures and options in all of the following ways EXCEPT:
A) intended to reduce the risk faced by participants. B) more flexibility. C) more privacy. D) less regulation.
In the 1980s, President Ronald Reagan argued that high tax rates distorted economic incentives to work and save. In the 1990s, President Bill Clinton argued that the rich were not paying their fair share of taxes. Which of the following statements best summarizes the economic theories behind the differing philosophies?
a. President Reagan was concerned about vertical equity, whereas President Clinton was concerned about horizontal equity. b. President Reagan was concerned about average tax rates, whereas President Clinton was concerned about horizontal equity. c. President Reagan was concerned about marginal tax rates, whereas President Clinton was concerned about vertical equity. d. None of the above is correct.