Refer to Figure 7-1. Suppose the government allows imports of leather footwear into the United States. The market price falls to $24. What area represents domestic producer surplus?
A) T + U B) V + W + X + Y C) W + X + Y D) V
D
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An outside lag is
A) a policy aimed at increasing GDP. B) a policy aimed at reducing GDP. C) a lag in implementing policy. D) the period of time it takes for policies to work.
Refer to the table below. Busy Betty sells her cakes for $20 each and her constant marginal cost to produce each cake is $12, which is equal to her (constant) average total cost. If she does not sell a cake the day she makes it, she sells it as day-old cake for $10. What is her expected marginal cost of holding the 23rd cake in inventory?
The above table shows the probability distribution of cake sales at Busy Betty's Bakery.
A) $6.60
B) $0.40
C) $1.20
D) $2.00
The government of Marina imposes a tax on alcoholic beverages because of the increasing costs of sending first responders to accidents that are caused by drunk driving. This is an example of a _____
a. cap-and-trade tax b. corrective tax c. gift tax d. property tax
As the number of firms in the oligopoly grows very large, the
a. output effect disappears. b. price effect disappears. c. output effect equals the price effect. d. price of the product greatly exceeds marginal cost.