Refer to the below table. The marginal revenue product of the fourth unit of input is approximately:
A. $27
B. $21
C. $16
D. $13
B. $21
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Imposing a new $10 downtown parking tax a. would be a negative incentive that might have the positive result of reducing downtown congestion. b. would be a positive incentive that might have the positive result of reducing downtown congestion. c. would be a negative incentive that could only have negative results
d. None of the above is true.
A natural monopoly is one that deliberately erects entry barriers
a. True b. False Indicate whether the statement is true or false
If actual output exceeds potential output, the economy:
A. is experiencing a recessionary gap. B. may be in a long-run equilibrium but is not in a short-run equilibrium. C. is experiencing an inflationary gap. D. is in neither a short-run nor long-run equilibrium.
The assumption underlying economic theory is that
A) people respond only to negative incentives, not to positive ones. B) choices are affected by incentives. C) value judgments do not play a role in the economic decisions people make. D) money is the only incentive that matters.