A subsidy:
A. increases the amount that buyers pay for a good.
B. reduces the amount that buyers pay for a good.
C. reduces both the amount that buyers pay and the amount sellers receive for a good.
D. increases both the amount that buyers pay and the amount sellers receive for a good.
B. reduces the amount that buyers pay for a good.
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Sue's Surfboards is the sole renter of surfboards on Big Wave Island. If marginal revenue is positive at the number of surfboard rentals made each hour, then Sue's Surfboards
A) must face an elastic demand for surfboard rentals. B) must face an inelastic demand for surfboard rentals. C) can increase its total revenue by increasing the price of rentals. D) must face a unit elastic demand for surfboard rentals.
Broomfield city council is deciding how many police officers the city needs. Broomfield's population is 10,000 people. The marginal cost of a police officer is $60,000 per year
The marginal benefit schedule of an average city resident from police protection is shown in the table above. Police protection is a public good. The marginal benefit for all of Broomfield from hiring the 4th police officer is A) $56,000. B) $5.60. C) $8,000. D) $6.00.
If your nominal income in 2014 is $50,000, and prices increase by 50% between 2014 and 2017, then to have the same real income, your nominal income in 2017 must be
A) $50,000. B) $75,000. C) $100,000. D) $150,000.
In Figure 17-4 above, the profit-maximizing quantity, in the absence of "menu costs," ________, with profit equal to ________
A) remains Y0, J + K B) remains Y0, H + K C) remains Y0, G + H + J + K D) falls to Y1, G + J E) falls to Y1, F + G + J