The transitional gains trap is a _____
a. by-product of some types of regulation
b. associated with the move from a socialist to a market society
c. associated with the move from a communal to a socialist society
d. by-product of changing the rate at which capital gains are taxed
a
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By reducing prices, competition encourages ________ transactions, which generates ________ cooperative surplus
A) more; more B) more; less C) less; more D) less; less
Jim has estimated elasticity of demand for gasoline to be 0.7 in the short-run and 1.8 in the long run. A decrease in taxes on gasoline would:
a. lower tax revenue in both the short and long run. b. raise tax revenue in both the short and long run. c. raise tax revenue in the short run but lower tax revenue in the long run. d. lower tax revenue in the short run but raise tax revenue in the long run.
In the prisoners’ dilemma game, each player
A) has only one possible strategy. B) can choose from two strategies. C) can choose from three strategies. D) can choose from four strategies.
Suppose that your firm's marginal cost of producing a pencil is 5 cents and the average cost of producing a pencil is 3 cents. If your firm is interested in minimizing average total costs, what should your firm do?
A. Increase production. B. Decrease production. C. Maintain production at the current level. D. Look for ways to increase fixed costs.