A tax on the sellers of cameras encourages
A. sellers to supply a smaller quantity at every price.
B. buyers to demand a smaller quantity at every price.
C. sellers to supply a larger quantity at every price.
D. Both A) and B) are correct.
A. sellers to supply a smaller quantity at every price.
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A discouraged worker is defined as
A) someone who is working at a job he dislikes. B) someone who is overqualified for the job she currently holds. C) someone who would like to work full time but is only working part time. D) someone who has given up actively looking for a job after an extended period of unemployment.
Which of the following statements is TRUE about taxes?
A) Taxes always create more deadweight loss than do price ceilings and price floors. B) Taxes decrease both consumer surplus and producer surplus while creating a deadweight loss. C) Government revenue from a tax is always greater than the loss of producer surplus and consumer surplus. D) Both answers A and C are correct.
Which statement is true of the graph shown? 
A. The shut down point of the firm would be at an output more than Q*. B. The marginal cost curve crosses the AFC curve at the lowest point of the AFC curve. C. The marginal cost curve should not cross the AFC while it is falling. D. If an ATC curve was drawn in the graph it would intersect the MC curve but not any other curve.
An avocado orchard employs five full-time workers. Currently, the average product of labor is 120 pounds of avocados per day. The orchard hires a 6th full-time worker and his marginal product is 150 pounds of avocados. The average product of the six
workers will now be A) more than 120 pounds. B) less than 120 pounds. C) equal to 120 pounds. D) greater than the marginal product of labor.