The XYZ Computer Company has a monopoly over the production of a specialized color printer. The XYZ Computer Company will find it profitable to increase the production of specialized color printers as long as marginal cost
A. is greater than marginal revenue.
B. equals marginal revenue.
C. is less than marginal revenue.
D. is positive.
Answer: C
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M1 money includes all but which of the following?
a. Checkable deposits b. Savings accounts c. Paper money d. Coins
The excess burden of a tax is $5,000 and the tax revenue from this tax is $20,000. The total burden of this tax is
A. $4,000. B. $5,000. C. $15,000. D. $25,000.
Suppose the demand for peaches from South Carolina is perfectly elastic. If the supply curve is upward sloping and a tax is imposed on peaches from South Carolina, then
A) peach sellers pay all of the tax. B) peach buyers pay all of the tax. C) peach buyers and sellers evenly split the tax. D) the government does not collect any revenue from the tax. E) the tax does not change the equilibrium quantity of peaches.
During the business cycle,
A) real GDP fluctuates around nominal GDP. B) nominal GDP fluctuates around real GDP. C) real GDP fluctuates around its trend. D) trend GDP fluctuates around real GDP. E) real GDP falls after the trough.