How is the price producers receive with a subsidy calculated?
a. by subtracting the tax from the amount of the subsidy
b. by adding deadweight loss to the total surplus
c. by subtracting the amount of the subsidy from producer surplus
d. by adding the price consumers pay to the amount of the subsidy
d. by adding the price consumers pay to the amount of the subsidy
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The above figure shows the payoff to two airlines, A and B, of serving a particular route
If the two airlines must decide simultaneously, and the government imposes a $20 per firm tax on firms that service this route, which of the following maximizes the firms' joint profits? A) Neither firm services the route. B) Firm A offers firm B $20 to not enter. C) Both firms will service this route. D) Firm B offers firm A $30 to not enter.
The Connecticut General Incorporation act:
a. was passed in 1797 and allowed private citizens to pursue liability claims against corporations. b. provided for the state legislature to grant charters. c. expanded the liability for English joint-stock companies. d. was passed in 1837 and made incorporation a right of anyone. e. None of the above are correct.
Suppose that interest rates unexpectedly rise and that FineLine Corporation announces that revenues from last quarter were down but not as much as the public had anticipated they would be down. According to the efficient markets hypothesis, which of the these things make the price of FineLine Corporation Stock fall?
a. both the interest rate rising and the revenue announcement b. neither the interest rate rising nor the revenue announcement c. only the interest rate rising d. only the revenue announcement
?Which of the following is true of time series data?
A. ?The time series data is easier to analyze than cross-sectional data. B. ?The time series data are independent across time. C. ?The chronological ordering of observations in a time series conveys potentially important information. D. ?A time series data set consists of observations on a variable or several variables at a given time.