The long-run aggregate supply line is:
A. downward sloping.
B. upward sloping.
C. vertical at the economy's actual output.
D. vertical at the economy's potential output.
Answer: D
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Relative to free trade, when a tariff is imposed in a market for an imported good,
A) the consumer surplus in that market increases. B) the producer surplus in that market decreases. C) the total surplus in that market decreases. D) tariff revenue decreases. E) deadweight loss decreases.
Resource use is efficient when
A) marginal social benefit exceeds marginal social cost. B) marginal social cost is decreasing. C) marginal social benefit equals marginal social cost. D) marginal social benefit is increasing.
If you are a sole proprietor of a firm, the value of the wage you could have earned elsewhere is
a. an explicit cost. b. an accounting cost. c. an implicit cost. d. not a cost.
The problems posed by special interests are unaffected by fiscal federalism
a. True b. False