As a result of a per-unit tax on output in a market:
a. the quantity traded increases
b. the quantity traded does not change.
c. the quantity traded decreases.
d. a surplus is created at the new equilibrium price.
c
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Suppose a jar of orange marmalade that is ultimately sold to a customer at The Corner Store is produced by the following production process: Name of CompanyRevenuesCost of Purchased inputsCitrus Growers Inc.$0.750Florida Jam Company$2.00$.75The Corner Store$2.50$2.00What is the sum of the value added of all the firms?
A. $4.50 B. $2.50 C. $5.25 D. $2.75
Suppose a bank has $3 million in excess reserves and total reserves of $10 million. A required reserve ratio of 10% is applicable to all deposits at the bank. What is the total amount of deposits at the bank?
a. $10 million b. $300 million c. $40 million d. $100 million e. $70 million
When a producer has a comparative advantage in producing a good, it means the producer:
A. has the ability to produce the good at a lower opportunity cost than others. B. is efficient in production. C. has no reason to trade with others. D. can produce more of that good than others with the same number of workers.
The profit-maximizing monopolist will never operate in a price range over which
A. P > MC. B. demand is inelastic. C. P > MR. D. the demand curve slopes downward.