The graph above shows the market for a product where S1 is the original supply curve and S2 is the new supply curve following a tax on producers to reduce pollution. The tax per unit of output is:
A. BG.
B. AJ.
C. AB.
D. AC.
Answer: D
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The national debt is the amount
A) by which government outlays exceed tax revenue in a given year. B) by which government tax revenue exceed outlays in a given year. C) of government outlays summed over time. D) of debt outstanding that arises from past budget deficits. E) of all future entitlement spending.
GDP is the total market value of all final goods and services produced in a given time period within a nation's borders.
Answer the following statement true (T) or false (F)
If North Korea is currently producing at efficiency, and it proceeds to increase the size of its military, then, as long as nothing else changes, its
A. Production of nonmilitary goods will increase. B. Production possibilities curve will shift inward. C. Production possibilities curve will shift outward. D. Production of nonmilitary goods will decrease.
Answer the following statements true (T) or false (F)
1. To maximize profits, a competitive firm will maximize the difference between MRP and the wage rate for the laborers it hires. 2. To achieve profit maximization, a firm must produce the profit-maximizing output with the least amount of economic resources. 3. If a firm pays labor $5 and receives a MPL of 10, while paying capital $100 and receiving a MPC of 100, to lower production costs it should hire more labor and less capital. 4. If MPx > MPy, a firm should hire more x and less y.