How much would consumers in the figure below spend to persuade politicians to regulate the monopoly's price to marginal (or average) cost? 
A. $0
B. $8
C. $24
D. $16
Answer: C
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If the marginal propensity to save is 0.20, then the value of the tax multiplier is
A) -5. B) -4. C) 5. D) 1.2.
If the primary goal in implementing a tax is to maximize efficiency and minimize deadweight loss, the government should impose a(n):
A. income tax. B. lump sum tax. C. sin tax. D. proportional tax.
In a two-sided market, a firm that provides services that link together groups of consumers and producers is called a(n)
A. end user. B. platform. C. tit-for-tat. D. monopoly.
It is ________ to empirically test alternative macroeconomic models against one another ________ macroeconomic models differ in ways that are hard to standardize.
A. pointless; because B. difficult; because C. impossible; because D. relatively easy; even though