All of the following will cause the supply curve of good A to shift rightward EXCEPT
A. a reduction in the prices of inputs used to produce good A.
B. a decrease in the per-unit tax on good A which producers must pay.
C. an increase in the number of firms in the industry producing good A.
D. an increase in the market price of good A.
Answer: D
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If a single firm can meet the entire market demand at a lower average total cost than a larger number of smaller firms, the single firm is
A) price discriminating. B) a natural monopoly. C) a legal monopoly. D) efficient when profit maximizing. E) an ownership-of-the-market monopoly.
A landlord rents his rat-infested apartment for $700 per month for a total of twelve months this year. What happens to GDP?
A) It increases by $8,400. B) It increases by the difference between the rent charged and the price of any maintenance and repairs. C) It decreases by $8,400. D) Nothing.
When paper currency is decreed by governments as legal tender, legally it must be
A) paper currency backed by gold. B) a precious metal such as gold or silver. C) accepted as payment for debts. D) convertible into an electronic payment.
Which of the following is not a reason for the Ricardian equivalence theorem to fail to hold?
A) tax distortions B) people can borrow from the government. C) finite-lived people. D) credit market imperfections.