Which of the following will cause the marginal cost curve of making cigarettes to shift?
A) a $5 million penalty charged to each cigarette maker
B) a $1 per pack tax on cigarettes
C) a $1 million advertising campaign by the American Cancer Society
D) All of the above.
B
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In response to accounting scandals in 2002, the federal government passed legislation requiring that corporate directors have a certain level of expertise with financial information and mandating that chief executive officers personally certify the
accuracy of financial statements. What is the name of this legislation? A) the 24th amendment to the Constitution B) the Sarbanes-Oxley Act C) the Kennedy-Lott Act D) the Accountant Reliability Act
What is a trade credit?
a. A credit card purchase b. A government loan for exporters c. The extension of a period of time before which an importer must pay for goods and services purchased d. An IMF loan to meet trade deficit and liabilities for hard currencies e. The time it takes for franchisees to pay for the products they obtain from the main franchiser
Because natural monopolies have a declining average cost curve, regulating natural monopolies by setting price equal to marginal cost would
a. cause the monopolist to operate at a loss. b. result in a less than optimal total surplus. c. maximize producer surplus. d. result in higher profits for the monopoly.
Jim buys a $1000 bond from ABC Company. ABC Company uses the $1000 to purchase a new piece of machinery. Whose spending would be an act of investment in the language of macroeconomics?
a. only Jim's b. only ABC Corporation's c. Jim's and ABC Corporation's d. neither Jim's nor ABC Corporation's