The reduction in transactions costs per dollar of investment as the size of transactions increases is
A) discounting.
B) economies of scale.
C) economies of trade.
D) diversification.
B
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Refer to Figure 4-4. At a price of $18 consumers are willing to buy 40 pounds of tiger shrimp. Is this an economically efficient quantity?
A) Yes, because $18 shows what consumers are willing to pay for the product. B) No, the marginal benefit of the 40th unit exceeds the marginal cost of that 40th unit. C) Yes, otherwise consumers would not buy 40 units. D) No, the marginal cost of the 40th unit exceeds the marginal benefit of the 40th unit.
Explain the purpose of payroll taxes. Is it a proportional form of tax?
Each of the following was considered a proponent of supply-side economics EXCEPT
A. Arthur Laffer. B. Ronald Reagan. C. Congressman Jack Kemp. D. Milton Friedman.
Exhibit 8-19 Long-run perfectly competitive industry
As shown in Exhibit 8-19, assume that a perfectly competitive industry is in long-run equilibrium at point A. If the demand curve shifts from D1 to D2, the adjustment sequence between points will be:
A. A to B, then back to A. B. A to D, then back to A. C. A to D, then to C. D. A to B, then to C.