The result that a firm should produce where MC=MR except when the shutdown condition is met is based on the assumption that it is attempting to
A. minimize average costs
B. maximize market share.
C. minimize marginal costs.
D. maximize profit.
Answer: D
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Figure 11-1
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In Figure 11-1, to reach the level of potential GDP, the administration of President Obama would most likely advocate
A. increasing Social Security payments. B. decreasing defense spending. C. decreasing personal income taxes. D. All of the above are correct.
The amount of additional satisfaction derived from an additional unit of a good or service is called: a. total utility
b. marginal cost. c. total cost. d. marginal utility.
Which of the following best describes the built-in stabilizers as they function in the United States?
A. Personal and corporate income tax collections automatically fall and transfers and subsidies automatically rise as the national income rises. B. Personal and corporate income tax collections and transfers and subsidies all automatically vary inversely with the level of national income. C. Personal and corporate income tax collections automatically rise and transfers and subsidies automatically decline as national income rises. D. Personal and corporate income tax collections and transfers and subsidies all automatically vary directly with the level of national income.
An excise tax of $1.00 per gallon of gasoline placed on the suppliers of gasoline would shift the supply curve
A. up by less than $1.00. B. down by $1.00. C. up by $1.00. D. down by more than $1.00.