If you were told that the exchange rate between the U.S. dollar and the Canadian dollar was 1.2, that would mean that Canadians would have to spend ____ to buy a $12 watch in New York City
a. c and e
b. 10 U.S. dollars
c. 12 U.S. dollars
d. 14.4 U.S. dollars
e. 14.4 Canadian dollars
a
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Many states in the U.S. acquire significant amounts of funds from the following, except
A. personal income taxes. B. grants from the Federal government. C. property taxes. D. state-run lotteries.
Refer to Figure 4-14. To legally drive a taxicab in New York City, you must have a medallion issued by the city government. Assume that only 13,200 medallions have been issued
Let's also assume this puts an absolute limit on the number of taxi rides that can be supplied in New York City on any day, because no one breaks the law by driving a taxi without a medallion. Assume as well that each taxi provides 6 trips per day. In that case, the quantity of taxi rides supplied is 79,200 (or 6 rides per taxi × 13,200 taxis). This is shown in the diagram with a vertical line at this quantity. Assume that there are no government controls on the prices that drivers can charge for rides. a. What would the equilibrium price and quantity be in this market if there was no medallion requirement? b. If there was no medallion requirement, indicate the area that represents consumer surplus. c. If there was no medallion requirement, indicate the area that represents producer surplus. d. If there was no medallion requirement, indicate the area that represents economic surplus. e. What are the price and quantity with the medallion requirement? f. With a medallion requirement in place, what area represents consumer surplus? g. With a medallion requirement in place, what area represents producer surplus? h. With a medallion requirement in place, what area represents the deadweight loss? i. Based on your answers to parts (c) and (g), are taxicab drivers better off with the medallion requirement for taxicabs than without? j. Are consumers better off with or without the medallion requirement for taxicabs?
Average total cost (ATC) is calculated as follows:
a. ATC = (change in total cost)/(change in quantity of output). b. ATC = (change in total cost)/(change in quantity of input). c. ATC = (total cost)/(quantity of output). d. ATC = (total cost)/(quantity of input).
Refer to the information provided in Figure 7.9 below to answer the question(s) that follow. 
Figure 7.9Refer to Figure 7.9. The firm's isocost line would shift from CD to CE if
A. the price of capital falls. B. the firm's total expenditure on inputs increases. C. the price of labor falls. D. either the price of labor rises or the firm's total expenditure on inputs increases.