In the short run, a tax placed on a perfectly competitive industry should
A. always increase the price.
B. increase the total amount of the good sold.
C. not affect the total amount of the good sold.
D. decrease the total amount of the good sold.
Answer: D
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A $1.5 trillion increase in investment leads equilibrium expenditure to increase from $7.0 trillion to $10.5 trillion. In this case, the expenditure multiplier is
A) 7.00. B) 4.67. C) 2.33. D) 1.50. E) 10.5.
If the interest is 5%, should the firm undertake the investment?
a. Yes, since NPV=0 b. Yes, since NPV<0 c. Yes, since NPV>0 d. No, since NPV=0
The case against economic growth is often made using which of the following arguments?
A. Limiting growth will contribute to more income equality across nations. B. Economic growth will contribute to more economic security, but it will also produce more boring life styles. C. Economic growth permits us to "make a living," but it does not provide us with "the good life." D. Common property resources need to be protected by the price system.
In economic terminology, a free rider is someone who:
A. does not pay for his or her own consumption of a public good. B. is earning economic profit. C. chooses not to consume a public good. D. raises his or her prices because all other prices are rising.