"If Congress cuts income taxes, demand for output is likely to increase" is a ________ statement about ________ policy.

The key assumption underlying the theory of the firm is that:

A) firms are assumed to maximize sales revenue. B) managers are assumed to maximize the number of employees in their department. C) firms are assumed to maximize profits. D) none of the above

Economists look at which of the following to get a quick visual expression of income distribution?

a. Gini coefficient. b. IRS records of how much income each household earned. c. supply and demand curves for resources. d. Lorenz curve. e. surveys of business estimates for MRPs.