Refer to the above figure. A unit tax has been placed on the good. The producer pays what amount of the tax?
A. none of the tax
B. P2 - P0
C. P1 - P0
D. P2 - P1
Answer: C
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Denise owns a plant that produces watch parts in Ohio. Denise noticed that when she hired the last worker, that worker's marginal product exceeded the marginal product of the previous worker
As a result, when the last worker was hired, Denise's average product of labor A) decreased. B) increased. C) did not change. D) perhaps changed, but there is not enough information to determine whether or not it did change. E) equals the marginal product of labor.
Suppose the nominal interest rate is 7 percent annually, and you deposit $1,000. Inflation in the economy throughout the year is 7 percent. At the end of the year, you have earned:
A. an increase in your purchasing power. B. no increase in your purchasing power. C. no increase in your savings. D. a decrease in your purchasing power.
It is often argued that if foreign goods are kept out of the domestic economy:
a. jobs will be lost at home. b. jobs will be created abroad. c. foreign consumers will enjoy product surpluses. d. jobs will be created at home. e. foreign consumers will suffer product shortages.
The new growth theory would be most likely to lend support for increased government support for
a. land acquisition. b. natural resource development. c. stricter environmental standards. d. higher education.