Costs that a firm remaining in business will still incur even if it halts current production are called
a. fixed costs.
b. variable costs.
c. implicit costs.
d. explicit costs.
A
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Over twenty years ago the city of Washington D.C. was facing a budgetary shortfall. In a plan to increase tax revenue the mayor and city council agreed to raise the excise tax on gasoline
Typically for goods like gasoline which are price inelastic this should have led to an increase in tax revenue. However, just the opposite happened – tax revenue plummeted! What could explain this seemingly paradoxical result?
The experience with development policy over the last several decades now allow us to
a. predict the result of any country's policies b. establish the right mix of government and private sector c. be more confident about what issues are important and what directions to take d. show how one country's success can be repeated by another country e. we have not learned any good general lessons from experience
Almost all event markets forecast accurately
Indicate whether the statement is true or false
In an efficient market, a scarce good generally has a ____ than a less-scarce good
a. higher price b. higher total utility to consumers c. more even distribution across income classes d. lower price in off-peak periods