The tax elasticity of supply is
A. The percentage change in quantity supplied multiplied by the percentage change in tax rates.
B. Always less than 1.
C. Always equal to 1.
D. The percentage change in quantity supplied divided by the percentage change in tax rates.
Answer: D
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Which of the following is true of a production possibility frontier?
a. Producing on the production possibilities frontier implies productive efficiency, and society producing where it wants to be producing implies allocative efficiency. b. Producing on the production possibilities frontier implies allocative efficiency, and society producing where it wants to be producing implies productive efficiency. c. Producing on the production possibilities frontier implies both productive efficiency and allocative efficiency. d. Producing where the society wants to be producing implies both productive efficiency and allocative efficiency.
A competitive firm should always continue to operate in the short run as long as
A. P < ATC. B. MR > MC. C. MR > AVC. D. P < AVC.
The Ricardian equivalence proposition states that an increase in the deficit causes
A) consumption to decrease. B) savings to decrease. C) investment to decrease. D) all of the above E) none of the above
The figure above shows the market for private elementary school education in Chicago. There is no external cost of private elementary education
If the government does not intervene in this market, the equilibrium number of students being privately educated is ________ and the efficient quantity is ________. A) 0 students; 400 students B) 400 students; 400 students C) 400 students; 600 students D) 600 students; 400 students E) 600 students; 600 students