Lucinda buys a new GPS system for $250. She receives consumer surplus of $75 from the purchase. What value does Lucinda place on her GPS system?
A) $75
B) $175
C) $250
D) $325
Answer: D
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The amount of additional earnings that must be paid explicitly in taxes or implicitly in the form of a reduction in income supplements is known as the
a. marginal income tax rate. b. implicit marginal tax rate. c. explicit benefit-reduction rate. d. supplemental income tax rate.
Under a flexible exchange rate system, there is no need for foreign exchange reserves.
Answer the following statement true (T) or false (F)
Consider an unregulated monopoly in Figure 8.13. At the firm's profit-maximizing output level, its total revenue is:
A. $1,000,000. B. $200,000. C. $800,000. D. $600,000.
Suppose that each worker must use only one shovel to dig a trench, and shovels are useless by themselves. In the long run, the firm will experience
A) increasing returns to scale. B) constant returns to scale. C) decreasing returns to scale. D) The returns to scale cannot be determined from the information provided.