A lump-sum tax causes the after-tax consumption schedule:
A. and the before-tax consumption schedule to coincide.
B. to be steeper than the before-tax consumption schedule.
C. to be flatter than the before-tax consumption schedule.
D. to be parallel to the before-tax consumption schedule.
D. to be parallel to the before-tax consumption schedule.
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Society can increase its output and income by increasing its
A. resources and/or the productivity of the resources. B. private and public sectors of the economy. C. spending and taxes. D. markets and prices.
How long is it worthwhile to continue searching for a $20 bill that you lost if you value your time at $5 an hour?
A) About 2 hours if there is a fifty percent chance of finding it. B) About 4 hours, regardless of the probability of finding it. C) Only so long as you expect to find it within the next four hours, which could mean far more than four hours of searching. D) You cannot make a rational decision without first knowing whether you will find it. E) You should not search at all because the lost bill is a sunk cost.
Suppose Eddie's demand curve for text messages is T = 150 - 500Pt, where T stands for the number of text messages and Pt represents the price of text messages. What is Eddie's consumer surplus if Pt = $0.20 per message?
A. $0.50 B. $1.00 C. $2.00 D. $2.50
One source of inefficiency associated with monopolies stems from their insulation from competition and thus reduced incentive to cut costs and innovate.
Answer the following statement true (T) or false (F)