A distinguishing characteristic of public transfer payments is that:
A. there is a tax on the amount of the subsidy above a certain income level.
B. the recipients make no contribution to current production in return for them.
C. they are used to subsidize the major transportation carriers to reduce transportation costs.
D. they are counted as part of government purchases in the calculation of the gross domestic product.
Answer: B
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If a firm’s average cost is currently $150, and the marginal cost is $195, then the average cost is rising.
Answer the following statement true (T) or false (F)
Which of the following can be thought of as a barrier to entry?
A) scale economies. B) patents. C) strategic actions by incumbent firms. D) all of the above
If the firm in the given graph were to produce Q2 and charge P2, then:
These are the cost and revenue curves associated with a firm.
A. economic profit would be negative.
B. deadweight loss would be positive.
C. producer surplus would be zero.
D. profits would be maximized.
Using the Rule of 72, how long will it take something growing at 4% per year to double?
A. 72 years B. 100 years C. 288 years D. 18 years