Households and firms pay taxes to the government to:
a. increase their consumption spending.
b. finance the country's import bill.
c. increase their savings.
d. improve their standard of living.
e. finance government expenditures.
e
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Assume that the market for bread is perfectly competitive. The demand for bread is given by the equation: D = 120 - 10P and the market supply for bread is given by: S = 60 + 5P. Determine the equilibrium price and quantity of bread
What happens if the price of the bread is set at $10 per loaf? What happens if the market price is set at $2 per loaf?
Refer to Figure 5-1. If, because of an externality, the economically efficient output is Q2 and not the current equilibrium output of Q1, what does S1 represent?
A) the market supply curve reflecting marginal social cost B) the market supply curve reflecting implicit cost C) the market supply curve reflecting external cost D) the market supply curve reflecting marginal private cost
Suppose Alexander is successful in establishing a profitable market for his vegan bakery in what is a monopolistically competitive industry. In the long run, Alexander will most likely find it ________ to remain profitable as he faces ________ competition in the vegan bakery market.
A) easier; more B) harder; more C) easier; less D) harder; less
If a firm is facing inelastic demand, then the firm should decrease price to increase revenue
a. True b. False Indicate whether the statement is true or false