Half of all your potential customers would pay $16 for your product but the other half would only pay $10 . You cannot tell them apart. Your marginal costs are $4 . If you set the price at $16, the expected profit is:
a. $3
b. $4
c. $5
d. $6
d
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Economists tend to believe the most efficient way to induce environmental protection is through
a. standards that control economic activities b. government provision of environmentally sensitive goods and services c. market-based incentives such as taxes and subsidies d. economic planning e. none of the above
We know the following about a tie manufacturer: tie sales $1,300, cotton purchases $750, wages $400, interest on business loans $100, and profits $50. What is the contribution to GDP of this producer using the income approach?
A) $550 B) $500 C) $450 D) $400
Which of the following taxes is based on the benefits-received principle?
a. corporate income taxes b. personal income taxes c. property taxes d. gasoline excise taxes e. user fees that collect the same amount from each person
The Federal Reserve can increase aggregate demand by:
A. Reducing the money supply B. Reducing the discount rate C. Raising the reserve requirement D. Selling government securities in the open market