A differential commodity tax is the same as an excise tax.
A. True
B. False
C. Uncertain
A. True
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When the price of candy bars decreased from $0.55 to $0.45, the quantity demanded changed from 19,000 per day to 21,000 per day. In this price range, the price elasticity of demand (based on the midpoint formula) is
A. -0.5. B. -0.2. C. -1. D. -2.
Exclusion by the BLS of which of the following tends to understate the measure of unemployment in the economy?
a. children b. retired persons c. students d. people who do not want to work e. discouraged workers
Refer to the information provided in Figure 2.2 below for the economy of Microland to answer the question(s) that follow.
Figure 2.2Refer to Figure 2.2. Microland is currently operating at Point B. You correctly deduce that
A. Microland has recently experienced some type of technological breakthrough. B. Microland has overcome the problem of scarcity. C. Microland has achieved a position of inefficiency. D. in Microland, all resources are fully employed and there are no production inefficiencies.
When firms earn below normal rates of return
A. they raise their prices to increase their profits. B. they tend to leave the industry and seek profits elsewhere. C. they tend to stay in the industry in anticipation of other firms leaving the industry. D. they are still breaking even economically.