Which of the following is not an advantage of user charges?
a. User charges help ration consumption of the taxed good.
b. User charges are equitable from the standpoint of the benefit principle of taxation.
c. User charges reveal consumer preferences for the taxed good.
d. User chargers are easy to apply in cases where the benefits are spread diffusely.
d
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The trade-off between the present and future consumption is measured by
A. the foregone present consumption. B. the difference between the money price of future goods and the money cost of producing them. C. the money cost of both the present and future consumption. D. the difference between the money price of present goods and the money cost of producing them.
Figure 7-11
Figure 7-11 shows an average cost curve with points on it that correspond to three quantity levels. Which of the following statements must be wrong?
A. The firm’s technology may show increasing marginal returns as production increases from A to B. B. The firm may have positive fixed costs. C. As production expands from A to B to C, the firm may become increasingly difficult to manage efficiently. D. The firm’s average fixed cost may rise as production increases from B to C.
Bob and Bill can make 16 toys each if they devote 8 working hours in a day. Further, Bob can repair 4 cars and Bill can repair 2 cars, if they devote 8 working hours in a day. What is the opportunity cost of repairing one car to Bill?
a. 10 toys b. 8 toys c. 16 toys d. 12 toys e. 4 toys
A college student decides to spend the afternoon watching three movies rented from Red Box. The cost of each movie is $1. The student was willing to pay $4 to rent each of the first two movies and $2 to rent the third movie. What was the marginal benefit received by the student when renting the 1st movie?
A. $4 B. $8 C. $1 D. $2