Refer to the figure in which S is the before-tax supply curve and S t is the supply curve after an excise tax is imposed. The total tax collection from this excise tax will be area:
A. ABCE + ECF.
B. ABCE.
C. ECF.
D. 0BCG.
B. ABCE.
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The production possibilities frontier illustrates
A. the fundamental fact of scarcity. B. the opportunity cost of acquiring more of one good. C. maximum output utilizing all resources efficiently. D. All of the responses are correct.
A famous opera star made $2 million per year. He said he would rather sell insurance if he couldn't make more than $200,000 per year. If he is telling the truth, how much is he being paid in economic rent?
A) $2.0 million B) $200,000 C) $1.8 million D) $2.2 million
If a firm has implicit costs as well as explicit costs
A) net income will always be less than accounting profit. B) accounting profit will be zero. C) net income will always be greater than accounting profit. D) economic profit will be less than accounting profit.
After the Fed raises the federal funds rate, the effects on the economy can take up to two years before they occur. Is this statement accurate? Lay out the time path of how an increase in the federal funds rate affects the economy
What will be an ideal response?