If Uber is required to start paying the value added tax (VAT) in Great Britain, this will have the potential to ________ the equilibrium price in this market and, therefore, ________ efficiency
A) raise; increase
B) raise; decrease
C) lower; increase
D) lower; decrease
Answer: B
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Suppose the government has a budget surplus of $2 billion. If there is no Ricardo-Barro effect, what occurs?
A) The demand for loanable funds curve shifts rightward, raising the interest rate, and increasing investment. B) The supply of loanable funds curve shifts leftward, lowering the interest rate, and increasing investment. C) The demand for loanable funds curve shifts leftward, lowering the interest rate, and decreasing investment. D) The supply of loanable funds curve shifts leftward, raising the interest rate, and decreasing investment. E) The supply of loanable funds curve shifts rightward, lowering the interest rate, and increasing investment.
To maximizes profits, what price should ATC Communication charge?
The table below shows the demand curve and cost information for ATC Communication, a firm that is a monopoly.
a. $600
b. $800
c. $400
d. $200
When interest rates on treasury bills and other financial assets are low, the opportunity cost of holding money is _______, so the quantity of money demanded will be _______.
A. Low; low B. Low; high C. High; low
The difference between price and average total cost is
A. marginal costs. B. an irrelevant quantity. C. average profit. D. total costs.