Use the figure below to answer the following question.
What area represents tax revenue after the government imposes the excise tax on the market?
A. triangle abc
B. triangle $1c$9
C. triangle $21a$13
D. square $13ac$9
Answer: D
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In the figure above, the shift in the supply curve for U.S. dollars from S0 to S1 could occur when
A) the U.S. interest rate rises. B) foreign interest rates rise. C) the expected future exchange rate falls. D) the current exchange rate rises.
If View Your World, a high-end window manufacturer, directly pays all of the transaction costs, the total cost to produce its windows includes all of the following except which one?
A) the cost of producing the windows B) the cost of transporting the inputs to make the windows to the plants C) the cost of transporting the product to its customers D) the cost to add another production plant
Sophia sits behind Gabriel on an airplane. Gabriel owns the right to recline his seat and values this right at $10 . Sophia values a non-reclined seat in front of her at $40 . Assuming no transaction costs, which of the following represents an efficient solution?
a. Sophia offers Gabriel between $10 and $40 to not recline his seat. Gabriel accepts, and both parties are better off. b. Sophia offers Gabriel between $0 and $10 to not recline his seat. Gabriel accepts, and Sophia is better off. c. Sophia offers Gabriel between $10 and $40 to not recline his seat. Gabriel declines because he has the right to recline his seat. d. Gabriel offers Sophia between $10 and $40 to recline his seat. Sophia accepts, and both parties are better off.
Exhibit 1A-1 Straight line
In Exhibit 1A-1, as X increases along the horizontal axis, from point A to point B on the line, the Y valuesÂ
A. increase so the relationship between X and Y is direct. B. decrease so the relationship between X and Y is inverse. C. remain unchanged so the relationship between X and Y is independent. D. change so the relationship between X and Y is variable.