To eliminate the inefficiency resulting from an external cost of production, the government can impose a tax on producers that is equal to the
A) MSB.
B) MC.
C) marginal external cost.
D) MSC.
C
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A sandwich shop has six months left on its lease to its storefront and equipment and currently employs three workers who work on an on-call basis, with no contract. Ingredients are bought daily. How long is the long run for the sandwich shop?
A. The long and short run are the same in this case B. Six months, after which all inputs listed become variable C. A year, the typical term for long run, as there is nothing unusual about this business D. None of these is true.
In response to accounting scandals in 2002, the federal government passed legislation requiring, among other things, that auditors disclose any potential conflicts of interest. What is the name of this legislation?
A) the Accountant Reliability Act B) the 24th amendment to the Constitution C) the Kennedy-Lott Act D) the Sarbanes-Oxley Act
In the above figure, which of the figures shows a relationship between x and y with a negative slope?
A) Figure A B) Figure B C) Figure C D) Figure D E) Both Figure A and Figure B
Futures contract prices are established
A) through an auction process in the "pit" on the exchange floor. B) through brokers. C) through an over-the-counter network of futures dealers. D) through specialists on the stock and bond exchanges.