The short-run supply curve of a competitive firm is the portion of
A. its average total cost curve that lies above its marginal cost curve.
B. its marginal cost curve that lies above its average total cost curve.
C. its marginal cost curve that lies above its average variable cost curve.
D. the average variable cost curve that lies above its marginal cost curve.
Answer: C
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Static tax analysis assumes that
A) an increase in a tax rate may lead to a decrease in the tax base. B) an increase in a tax rate will lead to an increase in the tax base. C) an increase in a tax rate will leave the tax base unchanged. D) the tax base will always remain unchanged.
A difficulty with using a uniform per-unit tax to address a negative externality is that
A. the tax will increase price. B. the social cost of pollution might vary across geographic regions. C. the social cost of pollution should not be assessed on the consumers, but should be assessed on the firms. D. the tax will reduce output.
Trade sanctions were effective in getting N. Korea to give up its nuclear missile program.
Answer the following statement true (T) or false (F)
A continuous decrease in the level of prices over time is called ________.
A) deflation B) inflation C) disinflation D) deflection E) depression