Suppose the government of Southie imposes a per-unit sales tax on buyers in the market for jam and jellies. Which of the following is most likely to be an outcome of the tax?
a. A decrease in the market equilibrium price of jam and jellies
b. An increase in the quantity demanded by consumers
c. An increase in government revenue by an amount equal to the deadweight loss
d. An increase in the demand for jams and jellies
a
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A company finds that at its present level of production, MR = MC at $14, MC = AVC at $15, and MC = ATC at $20. Your advice to the firm regarding its short-run operations is
A) to continue production, as it is earning an economic profit of $1 per unit. B) to continue production, as it is earning an economic profit of $6 per unit. C) to shut down. D) to continue production at a loss.
If the asset market is in equilibrium, the growth rate of the nominal money supply minus the growth rate of real money demand equals
A) the real interest rate. B) the inflation rate. C) the price level. D) the growth rate of real output.
Suppose that there are two industries, A and B. There are five firms in industry A with sales at $5 million, $2 million, $1 million, $1 million, and $1 million, respectively. There are four firms in industry B with equal sales of $2.5 million for each firm. The four-firm concentration ratio for industry A is:
A. 1.0. B. 0.7. C. 0.8. D. 0.9.
The logic of why international trade increases well-being is
A. a major revision of the logic of why trade within a country increases well-being. B. completely different from the logic of why trade within a country increases well-being. C. a narrow, special case of the logic of why trade within a country increases well-being. D. no different from the logic of why trade within a country increases well-being.