Deposit insurance indirectly helped to create the savings and loan crisis in the United States during the 1980s
Indicate whether the statement is true or false
TRUE
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Consider a monopolist who has a total cost curve of: TC = 7X + (1/2)X2. The market demand equation is X d = 386 - (1/2)P.
A) What are the equilibrium quantity, equilibrium price, and profits in this market? B) Suppose that a unit tax of $1 is placed on the monopolist. What happens to the equilibrium quantity, equilibrium price, and profits? How much tax revenue does the government generate? C) Suppose that the same unit tax of $1 is placed on consumers. What happens to the equilibrium quantity, equilibrium price, and profits? How much tax revenue does the government generate? D) What can be said about the taxes?
Accounting profit equals
a. explicit costs minus implicit costs b. economic profit minus implicit costs c. economic profit minus explicit costs d. economic profit minus explicit costs and implicit costs e. economic profit plus implicit costs
The idea that firms incur actual costs when they change prices is known as _____. Firms in countries with lower inflation rates will change price _____ frequently compared to those countries where inflation is higher
Fill in the blank(s) with correct word
Figure 6-1
illustrates the four possibilities of the distribution of costs and benefits among voters for a government project. Programs that give subsidies to a small group of producers at general taxpayer expense would be considered
a.
type A projects, and the government would be likely to undertake these projects if they were efficient and to reject them if they were inefficient.
b.
type B projects, and the government would be likely to undertake many of these projects even when they were counterproductive (inefficient).
c.
type C projects, and the government would be likely to fail to undertake many of these projects even when they were productive (efficient).
d.
type D projects, and the government would be likely to undertake these projects if they were efficient and to reject them if they were inefficient.