In the exhibit below depicts the short run cost curves of a perfectly competitive firm. The shut down point is represented by the
a. intersection of MC and AFC
b. Intersection of MC and AVC
c. intersection of MC and ATC
d. minimum point of MC
b. Intersection of MC and AVC
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What would happen to the optimal amount of pollution if studies found dangerous effects of SO2 cause cancer and the government takes away subsidies to companies for cleaning up their pollution?
A. Uncertain B. Increase C. Stay the same D. Decrease
Social and political forces affect the way in which the invisible hand works.
Answer the following statement true (T) or false (F)
An increase in the excise tax imposed upon consumers of gasoline
A. shifts the market price of gasoline. B. shifts the demand for gasoline to the right. C. shifts the demand for gasoline to the left. D. shifts the supply of gasoline to the right.
Refer to the data above. At the $320 billion level of disposable income, the average propensity to save is:
The disposable income (DI) and consumption (C) schedules are for a private, closed
economy. All figures are in billions of dollars.
A. .015
B. .075
C. .335
D. .925