Which of the following is considered expansionary fiscal policy?
A) Congress decreases the income tax rate.
B) Legislation increases a college tuition deduction from federal income taxes.
C) The Arizona legislature cuts highway spending to balance its budget.
D) Congress increases defense spending.
A
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"If an individual is to maximize the utility received from consumption, he or she should spend all available income. . . .". This statement assumes
a. that saving is impossible. b. that the individual is not satiated in all goods. c. that no goods are "inferior.". d. Both a and b.
Assuming a firm is selling its output in a purely competitive market, its resource demand curve can be determined by:
A. multiplying total product by product price. B. multiplying marginal product by product price. C. dividing total revenue by marginal product. D. comparing marginal product with various possible input prices.