A firm that cheats in a cartel earns a higher profit because:
a. it sells more units of its own output
b. it charges more dollars per unit of its output.
c. it earns from economies of scale.
d. it is able to cut its costs by undercutting the cartel.
a
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For people with very low incomes, the Earned Income Tax Credit operates like a(n):
A. wage subsidy. B. lump sum transfer. C. tax on wages. D. in-kind transfer.
What types of international transactions are recorded in the balance of payment accounts?
What will be an ideal response?
Lorrie will receive a nominal wage increase of 10 percent this year. The inflation rate was 5 percent last year and is predicted to be 8 percent this year. If the economic forecast is correct, her real wage this year
a. will increase by approximately 2 percent b. will increase by approximately 8 percent c. will increase by approximately 5 percent d. will remain the same e. cannot be calculated without knowing the number of dollars by which her wage increases
Marginal damages
A. must always be considered in social marginal costs. B. must not be considered in social marginal costs. C. must sometimes be considered in social marginal costs. D. have nothing to do with social marginal costs.