If the government wants to generate large revenues from placing a tax on the consumption of a particular good, it should choose a good for which
a. the demand is price elastic
b. the demand is unitary elastic
c. the demand is price inelastic
d. there are many good substitutes available for the good
C
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Frictional unemployment is:
A. short-term unemployment that is associated with the process of matching workers with jobs. B. the extra unemployment that occurs during periods of recession. C. the additional unemployment not captured in official statistics resulting from discouraged workers and involuntary part-time workers. D. the unemployment that results when people retire or leave the labor force.
Suppose your expenses for this term are as follows: tuition: $10,000, room and board: $6,000, books and other educational supplies: $1,000
Further, during the term, you can only work part-time and earn $8,000 instead of your full-time salary of $20,000. What is the opportunity cost of going to college this term, assuming that your room and board expenses would be the same even if you did not go to college? A) $11,000 B) $17,000 C) $23,000 D) $29,000
Suppose you are told that the equilibrium price of gasoline has increased, while the equilibrium quantity of gasoline has fallen. You are also told that either the demand changed or supply changed, but not both
Which of the following must have occurred? A) Demand increased. B) Demand decreased. C) Supply increased. D) Supply decreased.
In the above figure, what happens to the firm's optimal level of output if the price it receives for its product decreases from P4 to P3?
A) Output stays the same. B) Output decreases. C) Output increases. D) There is not enough information provided to know what happens to output.