To maximize profits, the firm in Figure 7.3 will charge:
A. P1.
B. P2.
C. P3.
D. P4.
Answer: C
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The largest source of federal government revenue in 2014 was
A) individual income taxes. B) payroll taxes to fund Social Security and Medicare programs. C) sales taxes. D) corporate income taxes.
Which of the following is NOT one of the basic questions that an economic system attempts to answer?
A) How to eliminate choices? B) What to produce? C) How will goods and services be produced? D) For whom will goods and services be produced?
The supply curve for motor oil is the typical upward-sloping straight line, and the demand curve for motor oil is the typical downward-sloping straight line. When motor oil is taxed, the area on the relevant supply-and-demand graph that represents the deadweight loss is
a. larger than the area that represents consumer surplus in the absence of the tax. b. larger than the area that represents government's tax revenue. c. a triangle. d. All of the above are correct.
Which of the following mergers would most likely be challenged by the Federal Trade Commission?
A) two restaurants in a large metro area B) two largest wireless service providers in the U.S. wireless communication industry C) an automaker and an insurance company D) one oil refinery in the U.S. and another oil refinery in Canada