With the Lucas supply function, a price surprise means
A. actual price is greater than expected price.
B. actual price is less than expected price.
C. actual price is either greater than or lower than expected price.
D. actual price equals expected price.
Answer: C
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To measure the amount of tax money collected by the government, one uses the vertical distance between points
The accompanying diagram shows the effect of levying an income tax on the consumer. The pre-tax optimum is at point A, and the post-tax optimum is at point B.
a. A and B.
b. A and D.
c. B and C.
d. B and D.
When expectations cause people to discriminate against a certain group, it is referred to as:
A) preferential bias. B) implicit discrimination. C) statistical discrimination. D) taste-based discrimination.
To maximize profit, the monopolist produces on the ________ portion of its demand where ________
A) elastic; P = MC B) elastic; MR = MC C) inelastic; P = MC D) inelastic; MR = MC
If the ATC curve has a positive slope, then the MC curve must be
A) horizontal. B) vertical. C) above the ATC curve. D) below the ATC curve.