Refer to Figure 6-19. Suppose a tax of $2 per unit is imposed on this market. How much will buyers pay per unit after the tax is imposed?
a. $3
b. Between $3 and $5
c. Between $5 and $7
d. $7
Ans: c. Between $5 and $7
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Government is designed to handle problems not addressed by the private sector.
A. True B. False C. Uncertain
The Cournot theory of oligopoly assumes rivals will:
A. keep their output constant. B. follow the learning curve. C. decrease output whenever a firm increases its output. D. increase their output whenever a firm increases its output.
The employment-to-population ratio is defined as
A) total employment divided by labor hours then multiplied by 100. B) the labor force divided by the working-age population then multiplied by 100. C) total employment divided by the labor force then multiplied by 100. D) total employment divided by the working-age population then multiplied by 100.
Producer surplus is the
A) cost of the good summed over the quantity sold. B) demand for a good minus the supply summed over the quantity sold. C) price of a good minus the marginal cost of producing it summed over the quantity sold. D) marginal cost of producing it summed over the quantity sold.