Suppose the market supply curve is p = 5 + Q. At a price of 10, producer surplus equals
A) 50.
B) 25.
C) 12.50.
D) 10.
C
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Employers withhold several taxes from employees ' paychecks, one of which is FICA. Congress requires employers to pay half of the FICA tax and workers to pay the other half
Does this mean that the burden of the FICA tax falls evenly on employers and employees? Briefly explain.
A firm is currently producing an output at which price equals the minimum point on the average variable cost curve. If wage rates increase, the firm will
A) increase its rate of output to make up for the higher variable costs. B) shut down since it would no longer be covering its variable costs. C) decrease its rate of output to offset the higher variable costs. D) not make any changes since its current rate of output is still minimizing its losses.
International trade
a. raises the standard of living in all trading countries. b. lowers the standard of living in all trading countries. c. leaves the standard of living unchanged. d. raises the standard of living for importing countries and lowers it for exporting countries.
The rate of unemployment is a topic of microeconomics.
Answer the following statement true (T) or false (F)