If gold and the dollar are substitutes, a cut in the Japanese discount rate can be expected to
A. appreciate the dollar and decrease the price of gold.
B. depreciate the dollar and increase the price of gold.
C. depreciate the dollar and decrease the price of gold.
D. appreciate the dollar and increase the price of gold.
Answer: A
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In a proportional tax system, ________
A) the average tax rate faced by an individual exceeds the marginal tax rate B) the marginal tax rate faced by an individual exceeds the average tax rate C) the average tax rate equals the marginal tax rate D) the marginal tax rate faced by all households are equal
When firms have market power, it means that they:
A. can noticeably affect the market price. B. have no control over the market price. C. can noticeably affect the market quantity available for sale. D. do not noticeably affect the market quantity offered for sale.
Environmentalists, worried about sulfur dioxide in the air, pressure the government to require bus manufacturers to modify exhaust systems in buses. In this situation,
a. benefits of the proposed requirements are more widespread than costs b. benefits and costs of the proposed requirements are equally widespread because producers of buses will pass cost increases on to bus companies who will increase fares c. pressure for government regulation is unnecessary because those who use buses will stop riding buses if they don't have cleaner emissions d. bus riders are more likely to lobby against the proposal than are bus producers e. bus riders are more likely to lobby against the proposal than are bus workers
During a year of operation, a firm collects $450,000 in revenue and spends $100,000 on labor expense, raw materials, rent, and utilities. The firm's owner has provided $750,000 of her own money form her personal portfolio instead of investing the money and earning a 10% annual rate of return. The firm also operates out of a building they own worth $1,000,000 which the owner inherited 25 years ago.
1.The explicit costs of the firm are $______________. 2. If the owner could earn 15% annually on the money she has invested in the firm, the economic profit of the firm would be ______________ (when revenue is $450,000). 3. The implicit costs are $______________. 4. The firm's accounting profit is $______________. 5. The firm earns an economic profit of $______________.