Tax expenditures can be viewed as government spending through the tax code
a. True b. False
a
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At a fast food restaurant, a large drink is twice as big as a small drink, but the restaurant charges 79¢ for the small drink and only 99¢ for the large drink. This situation is probably not a case of price discrimination because
a. the restaurant cannot easily prevent resale. b. people who buy large drinks order more food than people who buy small drinks. c. the cost of serving a large drink is not twice the cost of serving a small drink. d. the fast food restaurant has no monopoly power.
Marginal benefit is the benefit that your activity provides to someone else
Indicate whether the statement is true or false
A perfectly competitive firm is currently producing where price is $8 and both marginal cost and average variable cost are $9 . To maximize profit or minimize loss in the short run, this firm should
a. raise its price b. increase its output c. reduce its output d. lower its price e. shut down
Full employment is considered a major economic goal because: a. specialization is not possible without full employment
b. economic growth can only occur when there is full employment. c. the opportunity cost of unemployment is lost production. d. profit maximization of firms can only occur when there is full employment. e. inflation will be lower when full employment is achieved.