Suppose that when output is 20, marginal cost is $20, and average total cost is $30. Then which of the following is most likely to be true?
A. Average total cost is declining.
B. Average total cost is constant.
C. Average total cost is rising.
D. Average total cost is less than average fixed cost.
Answer: A
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If the marginal tax rate rises above t * = 63%, tax revenue will decrease because
A) workers refuse to pay taxes since the tax rate is too high. B) workers are in the downward-sloping portion of labor supply. C) workers reduce working hours in response to the wage loss. D) None of the above.
In the 20th century, one of the icons of achievement was ___________ who flew the first plane over the Atlantic Ocean, nonstop, from the U.S. to Europe
a. James Fichon b. F. Scott Fitzgerald c. Charles Lindbergh d. Eleanor B. Earhart
An open market sale by the Fed:
A. increases the money supply and increases output. B. increases the money supply and decreases output. C. decreases the money supply and increases output. D. decreases the money supply and decreases output.
For a monopolist to earn a positive economic profit, price has to exceed average total cost at the level of output at which marginal revenue equals marginal cost
Indicate whether the statement is true or false