If the government taxes a coal company by an amount equal to the damages of each marginal ton of coal, then the coal company's marginal social cost curve is the same as the marginal ________ curve.
A. cost
B. damage cost
C. benefit
D. private cost
Answer: A
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A sole proprietorship is limited to how many owners?
A) 1 B) 2 C) 10 D) There is no limit to the number of owners.
A study of countries with high inflation rates indicates that the inflation is generally
a. caused by strong labor unions. b. the result of restrictive macroeconomic policy, which pushes up interest rates. c. caused by supply shocks. d. the result of rapid growth in the money supply.
Deficiency payments are part of a federal program to assist
a. farmers. b. senior citizens. c. consumers. d. college students.
Terence has $50 per week to spend on Subway sandwiches and milkshakes. The price of a Subway sandwich is $5 and the price of a milkshake is $4. He buys 6 sandwiches and 5 milkshakes. The marginal utility of the 6th sandwich = 25 and the marginal utility
of the 5th milkshake = 24. Which of the following is true? A) He is not maximizing his utility and should buy more milkshakes. B) He is maximizing his utility. C) He is not maximizing his utility and should buy more Subway sandwiches. D) He is not maximizing his utility because he is not spending all of his income.