Refer to the figure below. If the price of a latte increases from $2.00 to $2.50: 
A. the change in total expenditure, if any, would depend on the supply curve.
B. total expenditure would stay the same.
C. total expenditure would increase.
D. total expenditure would decrease.
Answer: D
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An average cost pricing rule for a natural monopoly sets the price ________ the marginal cost, thereby ________ a deadweight loss
A) below; avoiding B) below; creating C) above; avoiding D) above; creating
MNCs can often decrease their tax liability through
(a) use of more capital-intensive techniques. (b) use of transfer pricing. (c) use of more foreign input sources. (d) bargaining with the host country. (e) none of the above.
Between 1929 and 2005 in the United States, as measured by the Lorenz curve, income inequality:
a. was greater. b. remain unchanged. c. was less. d. increased sharply.
Refer to Figure 18.4. With a tariff or quota, what is the equilibrium quantity of gloves in Duckland?
A. 100 B. 80 C. 60 D. 40