A government might use tax to:
a) Discourage consumption of goods with positive externalities
b) Discourage consumption of public goods
c) Discourage consumption of merit goods
d) Discourage consumption of goods with negative externalities
Answer: d) Discourage consumption of goods with negative externalities
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In the foreign exchange market, an increase in the world demand for U.S. exports shifts the
A) demand curve for U.S. dollars rightward. B) demand curve for U.S. dollars leftward. C) supply curve for U.S. dollars leftward. D) supply curve for U.S. dollars rightward.
"A profit-maximizing monopoly never produces an output in the inelastic range of its demand curve." True or false? Explain
What will be an ideal response?
In Figure 17-3 above, suppose we are working under assumptions of the Lucas model. With an expansionary monetary policy, the "policy ineffectiveness proposition" is shown as a movement between points
A) A and C. B) A and B. C) D and B. D) D and A. E) A and E.
The average total cost curve and the average variable cost curve grow closer as output increases because
a. the marginal cost of production intersects these curves at their minimum points b. in the long run all costs are variable c. the cost of labor dominates the cost of raw material inputs at high levels of output d. the total variable costs are constant e. the average fixed cost decreases as output increases