Figure 4-7
Refer to . The supply curve S1 and the demand curve D indicate initial conditions in the market for gasoline. A $.60-per-gallon excise tax on gasoline is levied. How much revenue does the $.60-per-gallon tax generate for the government?
a.
$40 billion
b.
$48 billion
c.
$50 billion
d.
$60 billion
b
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A ticket to an Eric Clapton concert costs $45. If you have a ticket, you can “scalp” it (sell it illegally) for $75. To a ticket holder, the opportunity cost of actually attending the concert is
A. $45. B. $50. C. $75. D. $115.
Each time the monopolist sells another unit of output, the total revenue increases by
a. the price of the last unit sold. b. more than the price of the last unit sold. c. less than the price of the last unit sold. d. the price of the first unit sold.
Briefly explain how the increase in the cost of health care might partially be a measurement problem due to changing quality of care.
What will be an ideal response?
At expiration, the value of an option:
A. is equal to the intrinsic value. B. is less than the intrinsic value. C. is equal to the time value of the option. D. is greater than the intrinsic value.