Suppose you are deciding whether to spend your tax rebate check on a new iPod or a new digital camera. You are dealing with the concept of
A. opportunity costs.
B. comparative advantage.
C. the fallacy of composition.
D. equity.
Answer: A
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If minimum wage legislation does cause unemployment, then:
A. those who are lucky enough to land jobs benefit. B. those who become unemployed as a result lose. C. firms will not bear the entire burden of the higher cost of employment. D. All of these are true.
In order for an economy to increase its production possibilities, the economy must
A) be very efficient. B) increase inputs. C) increase its wants. D) reduce output.
One criticism of the corporate income tax is that
A. it is so complex to administer that corporate income taxes are rarely collected by the Internal Revenue Service. B. it is too regressive. C. a portion of the corporations' tax burden is passed on to consumers via higher prices for goods and services and to workers via lower wages. D. it is too flat.
The individual firm's demand curve facing a monopoly is
A. nonexistent. B. the summation of all perfectly competitive firms' demand curves. C. also the market demand curve. D. the marginal cost curve above minimum average variable cost.