For a monopolist:
A. price equals average total cost.
B. price is above marginal revenue.
C. marginal revenue equals zero.
D. marginal cost equals zero.
Answer: B
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A limited military draft is likely to be inefficient because
a. it transfers wealth from those who are drafted to those who benefit from the army's services. b. the wage rate paid to army personnel is set by the government, not by the market. c. more people will be drafted than would have joined a volunteer army. d. there is no guarantee that young adults with the lowest opportunity costs will be drafted.
Suppose the government of a town of 2,000 people implements a tax on each of 5 people in a small neighborhood to raise $1,000 for a sculpture that will be placed in the common area of that 5-person neighborhood
Each of the 5 people in the small neighborhood will receive $120 in benefits from the sculpture. This tax is likely to A) generate a great deal of opposition from taxpayers. B) generate a great deal of opposition from the 5 people in the affected neighborhood. C) generate little opposition from the 5 people in the affected neighborhood. D) generate the desirable social outcome.
An increase in the incomes of baseball fans in New York leads to a rightward movement along the demand curve but does not shift the demand curve for Yankees tickets
Indicate whether the statement is true or false
In a progressive tax structure:
a. both the tax rate and absolute tax amount increase with an increase in income. b. the tax rate remains constant, but the absolute tax amount increases with an increase in income. c. both the tax rate and absolute tax amount decline with an increase in income. d. the tax rate falls,but the absolute tax amount increases with an increase in income. e. the tax rate increases, but the absolute tax amount decreases with an increase in income.