If a specific tax is implemented
A) the firm's average cost curve shifts up, resulting in lower profits.
B) the after-tax marginal cost curve shifts, resulting in lower quantity produced.
C) there is less profit per unit sold.
D) All of the above.
D
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Starting from long-run equilibrium, a sharp drop in oil prices results in ________ output in the short run and ________ output in the long run.
A. lower; higher B. lower; potential C. higher; higher D. higher; potential
Payoffs are:
A. the rewards that come from particular actions. B. always monetary. C. things that are only enjoyed by the winner. D. bribes made to gain some advantage unfairly during a game.
Subsidy
What will be an ideal response?
Purchasing power parity does not hold in the short to medium run because
A. some goods aren't internationally traded. B. exports don't equal imports. C. most business cycles are caused by shocks to aggregate demand. D. exchange rates fluctuate too much.