In theory, a corrective tax _____ the _____ will create the optimal result
a. equal to; externality
b. above; externality
c. equal to; price
d. above; price
a
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Where Y is GDP, C is consumption, I is investment, G is government purchases, T is net taxes, and there is no international trade, public saving equals:
A. Y - T - C. B. T - G. C. Y +T - G. D. Y - C - T.
The marginal cost to the phone company of handling a long distance call is likely to be
A) higher the fewer such calls people make. B) higher the more the phone company has invested in equipment. C) substantially less than the price charged for the call. D) substantially more than the price charged for the call.
The efficiency wage is
A) lower than the market-clearing wage, to penalize shirking. B) higher than the market-clearing wage, to penalize shirking. C) lower than the market-clearing wage, to allow managers the resources to monitor shirking. D) higher than the market-clearing wage, to reward workers for informing on others who shirk. E) lower than the market-clearing wage, because of shirking done by managers.
As a firm hires more workers, holding the amounts of capital and other inputs constant,
A) output increases at a decreasing rate. B) output increases at a constant rate. C) output increases for a while and then decreases. D) output increases, but we can't be certain whether output increases at an increasing or a decreasing rate.