Excise taxes are the largest single source of federal government revenue
a. True
b. False
Indicate whether the statement is true or false
False
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If a producer wants a monopoly with a legal barrier to entry, how can this be done?
i. The producer can spend funds lobbying to attain passage of the legal barrier to entry. ii. The producer can purchase an existing monopoly. iii. The producer can make rent seeking expenditures. A) i and ii B) i and iii C) ii and iii D) i, ii, and iii E) None of the above are ways to acquire a monopoly with a legal barrier to entry.
The dilemma in a prisoner's dilemma is that:
A. the players would be better off if they both played a dominated strategy. B. the outcome is random, so players are uncertain about which strategy to play. C. only one player has a dominant strategy, but the other player is uncertain about what to do. D. the players may be trapped in a game they don't know how to play.
Maximum Feasible Hourly Production Rates (in Tons) of EitherCookies or Coffee Using All Available ResourcesProductCountry AlphaCountry BetaCookies38Coffee94Use the above table. Assuming constant opportunity costs, the opportunity cost of producing cookies in country Alpha is ________, and the opportunity cost of producing cookies in country Beta is ________.
A. 3 tons of coffee; 0.5 ton of coffee B. 0.375 ton of cookies; 2.25 tons of coffee C. 0.33 ton of coffee; 2 tons of coffee D. 2.67 tons of coffee; 0.44 ton of cookies
The Mass Rapid Transit (MRT) System in Hong Kong has been running significant losses. Transport Ministry officials have argued over whether to raise fares to combat the losses. One argument against a fare increase is that it will aggravate traffic
congestion on the streets during peak commuter hours. Suppose that the current fare is $4 and the government is considering raising it to $6. Officials estimate that this reduces the number of rides purchased from 10,000 to 8,000 per day. a. Using the midpoint formula, what is the estimated elasticity of demand for MRT rides? b. What does this elasticity of demand suggest to you about what will happen to total revenue earned by the transit system if the fare increase happens? c. Last year, the MRT system incurred a loss of $50,000 per day. Do you think the fare increase will resolve the deficit problem as well as Ministry officials anticipate? Explain. What will be an ideal response?