A tax on sellers
What will be an ideal response?
- Decreases supply
- To determine new supply curve = tax + min. price that sellers are willing to accept for each quantity
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For a typical firm, the portion of the AC curve that is downward-sloping is because production
A. exhibits decreasing returns to scale. B. creates innovative technological progress. C. economies of scale. D. exhibits rising total product.
Which of the following best describes an assumption economists make about human behavior?
A) They assume that people take into account the question of fairness in all decisions they make. B) They assume that individuals act rationally all the time in all circumstances. C) They assume that rational behavior is useful in explaining choices people make even though people may not behave rationally all the time. D) They assume that individuals act randomly.
All of the following accurately describe microlending EXCEPT:
A) it involves small loans B) lending is primarily undertaken by the government C) the borrowers are people who are attempting to start or expand a small business D) many economists think it has aided economic growth in many low-income countries
Which of the following statements is a normative as opposed to a positive economic statement?
A) Consumer spending generates more jobs. B) If the price of gasoline goes up, people buy less. C) Labor unions should be allowed to organize in every industry. D) Government intervention in markets is common in many countries.