Taxes:
A. are sometimes used to correct market failures.
B. may benefit many of the consumers in the market.
C. are sometimes used to transfer surplus from consumers to producers.
D. are sometimes used to transfer surplus from producers to consumers.
Answer: A
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Prior to the establishment of the Federal Reserve System (1913), reserve requirements
(a) limited the banks' ability to lend. (b) did not restrict the amount of paper-money issued by banks. (c) freed banks to create as much money as the market could bear without regard for risk and withdrawal rates. (d) forced banks to place deposits in the national bank.
Suppose it costs Minnie's Mini-Golf (a monopolist) not a penny more to let another person on the course. If Minnie's faces a linear (downward-sloping) market demand curve, it will maximize profit by choosing the point on the demand curve at which
a. marginal revenue is greatest b. price elasticity is unit elastic c. price elasticity is inelastic d. price exceeds average total cost by the greatest amount e. price exceeds marginal cost by the greatest amount
If Shoffner Inc., a publicly traded corporation, has a share price of $125, revenues of $15.35 per share, and profits of $5.25 per share, what is the P/E ratio for Shoffner Inc. shares?
A. 0.12. B. 0.04. C. 8.14. D. 23.81.
In deriving the demand schedule for a good, economists assume that
A. reported income changes at each point on the demand schedule. B. consumers have equal incomes to allocate among goods. C. all other influences on demand except the product price are held constant. D. a consumer will allocate all of her income to one good.