If your business earns $10,000 in revenues, has explicit costs of $7,000, and implicit costs of $5,000, your economic profit is
A) $2,000.
B) -$2,000.
C) $5,000.
D) $3,000.
B
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When a Clarke tax is used to finance a public good, each person's tax equals
a. the amount that he is willing to pay for the good. b. the difference between the value he places on the public good and its cost. c. the cost of the public good minus the value that other people claim to receive from it. d. everyone else's tax, with the sum equaling the cost of producing the public good.
When long-run average costs are declining for the entire range of demand, the firm is known as a(n):
a. local monopoly. b. regulated monopoly. c. monopolistically competitive firm. d. natural monopoly. e. oligopoly.
Price supports can help farmers to better compete internationally
Indicate whether the statement is true or false
An increase in consumer confidence will tend to cause which of the following to occur?
A) a rightward shift in the IS curve B) a leftward shift in the IS curve C) an upward shift in the LM curve D) a downward shift in the LM curve