Which of the following will cause an increase in the rental cost/user cost of capital?
A) The rate of depreciation increases.
B) The real interest rate decreases.
C) The expected profit from the machine decreases.
D) all of the above
E) none of the above
E
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People on welfare often face the highest marginal tax rates of anyone because ______
a. of our regressive income tax system b. of the non-deducibility of state sales taxes c. of the loss of entitlement payments when earning additional income d. of increasing marginal utility of income
Producer surplus is the:
a. amount by which the quantity supplied of a good exceeds the quantity demanded of a good. b. measure of producers' willingness to sell a good plus the price of the good. c. measure of how much producers value a good. d. amount consumers actually pay for a good minus the amount the sellers are willing to sell the good.
Which statement(s) are most likely correct about supply?
a. A rise in price almost always leads to an increase in the quantity supplied of that good. b. A rise in price almost always leads to a decrease in the quantity supplied of that good. c. A fall in price almost always lead to an increase the quantity supplied. d. A rise in price almost always leader to an increase in the quantity demanded of that good.
The City Symphony presents three open-air concerts in the city park pavilion during the spring and summer. Many who attend make donations for symphony expenses, but the donation is not required. Some who attend make no contributions. Economists would
a. classify the noncontributors as detrimental externalities. b. call the concerts excludable events. c. call the noncontributors free riders. d. call the concerts depletable goods.