Answer the following statement(s) true (T) or false (F)
1. When a Clarke tax is used, the revenue collected may or may not cover the cost of providing the public good.
2. One problem with a Clarke tax is that although it may not cover the complete cost of a public good, it will never generate more than the cost of the good.
3. Social costs are equal to the costs imposed on others.
4. Social costs are felt by consumers but not by manufacturers.
5. All cars contribute positively to social gains.
True
False
False
False
False
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Assume that the market for bread is perfectly competitive. The demand for bread is given by the equation: D = 120 - 10P and the market supply for bread is given by: S = 60 + 5P. Determine the equilibrium price and quantity of bread
What happens if the price of the bread is set at $10 per loaf? What happens if the market price is set at $2 per loaf?
Which statement holds true in the post-World War II era?
(a) There was a permanent increase in the percentage of working adult women with children. (b) Firms found it most profitable to treat women as individuals rather than groups. (c) Marriage bars returned. (d) Female participation in farming, common labor and craft work in the U.S. increased significantly.
If the price of X falls, the budget constraint
a. shifts outward in a parallel fashion. b. shifts inward in a parallel fashion. c. rotates outward about the X-intercept. d. rotates outward about the Y-intercept.
Falling output, in the short run, could be due to:
A. an increase in short-run aggregate supply. B. a reduction in aggregate demand. C. an increase in long-run aggregate supply. D. an increase in aggregate demand.