A sandwich shop owner has the following information: P = MR = $4, ATC = $2, AVC = $1, MC = 4, and Q = 500 . From this, she can determine:
a. her profits are not being maximized.
b. she has earned zero economic profits.
c. she has earned economic profits of $1,000.
d. she has earned economic profits of $1,500.
e. she should sell fewer sandwiches.
c
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The comparison of after-tax income distribution among countries is difficult for all the following reasons except differences in
a. peoples' abilities b. tax systems c. government assistance programs d. cultures, for example preferences for leisure e. peoples' tolerance of income inequality
Governments should tax a market with an inelastic demand if the purpose of the government is to: a. increase its tax revenue
b. discourage the consumption of a good. c. increase the deadweight loss from the tax. d. discourage the production of a good.
Economists believe that externalities can be remedied by market methods.
Answer the following statement true (T) or false (F)
Recall the Application about genetic testing and adverse selection to answer the following question(s).According to the Application, what will ultimately happen if genetic testing for certain illnesses like Alzheimer's becomes more common?
A. Only the people who are at high risk for those diseases will purchase insurance against those illnesses. B. Only the people who are at low risk for those diseases will purchase insurance against those illnesses. C. The people who are at high risk for those diseases will decline insurance against those illnesses. D. Only the people who are at high risk for those diseases will be fired from their current jobs.