A tax on a polluting industry
A) is not desirable because it reduces efficiency.
B) leads to less output in this industry.
C) causes more resources to be used in the polluting industry.
D) shifts the marginal social benefit curve leftward.
E) shifts the marginal social benefit curve rightward.
B
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Suppose the government spending multiplier is 2. The federal government cuts spending by $40 billion. What is the change in GDP if the price level is not held constant?
A) a decrease of more than $80 billion B) an increase of less than $80 billion C) an increase equal to $80 billion D) an increase of greater than $80 billion E) a decrease of less than $80 billion
When markets are contestable, a monopoly firm must behave as if it had competitors, even though the market structure is monopolistic.
Answer the following statement true (T) or false (F)
Refer to the information provided in Table 31.2 below to answer the question(s) that follow.Table 31.2PeriodQuantity of Labor (L)Quantity of Capital (K)Total Output (Y)1 50 50 2002 50 60 2153 50 70 2254 50 80 230Refer to Table 31.2. During Period 3, output per capital is equal to
A. 0.31. B. 1.88. C. 3.21. D. 4.5.
Airlines that charge higher prices for customers who purchase their tickets at the last minute are:
A. not price discriminating because the cost of the ticket is not the same. B. lowering total economic surplus. C. perfect price discriminators. D. price discriminating by identifying passengers with higher reservation prices.