The tax on gasoline causes deadweight losses, as is the case with all taxes
a. True
b. False
Indicate whether the statement is true or false
False
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The isoquants for inputs that are perfect complements for one another consist of a series of:
a. right angles b. parallel lines c. concentric circles d. right triangles e. none of the above
The marginal fixed cost of a firm:
a. is a positive constant irrespective of output level. b. declines as output is increased because a fixed numerator is divided by an ever-growing denominator. c. generally increases as output is increased. d. is equal to average variable cost and average total cost at their minimum points. e. is always equal to zero and is therefore ignored by economists.
In oligopoly outcomes, the dominant firm's profitability depends on how the fringe, consisting of small competing sellers, responds to its choices
Indicate whether the statement is true or false
Maintaining the growth of the money supply at a constant rate is an example of
A) an inflation targeting rule. B) a nominal GDP targeting rule. C) discretionary policy. D) a money demand rule. E) a money targeting rule.