The above figure shows the supply curves in four different markets. If each of the markets has an identical downward sloping demand curve and the same tax is levied on suppliers, which market would produce the smallest amount of deadweight loss?
A) A
B) B
C) C
D) D
E) A and D
A
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If the MPC in an economy is 0.8, government could shift the aggregate demand curve rightward by $100 billion by
A. increasing government purchases by $25 billion. B. decreasing taxes by $25 billion. C. increasing government purchases by $80 billion. D. decreasing taxes by $100 billion.
Refer to the above table. Amy's utility schedule shows
a. increasing marginal utility throughout the entire schedule.
b. initially increasing marginal utility and then decreasing marginal utility.
c. initially decreasing marginal utility and then increasing marginal utility.
d. diminishing marginal utility throughout the entire schedule.
In the above figure, if the market price is $8, the firm
A) continues to produce but at an economic loss. B) continues to produce but at an economic profit. C) shuts down operations. D) produces 10 units.
If a good is produced with technology that allows the best producer to supply every customer at a low cost and every customer in the market wants to enjoy the good supplied by the best producer, the best producer will be called a