If marginal cost is zero, with an optimal two-part tariff
A) total revenue is maximized.
B) the firm does not have to charge a fixed-fee portion.
C) consumers maximize their surplus
D) firms may not maximize profit.
A
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The television network newscaster reports that the national inflation rate the past year equaled 4 percent. This report would be of particular interest to a ____
a. microeconomist. b. normative economist. c. macroeconomist. d. Ceteris paribus. e. social science economist.
One timing problem in using fiscal policy to counter a recession is the "recognition lag" that occurs between the
A. time the need for the fiscal action is recognized and the time that the action is taken. B. start of a predicted recession and the actual start of the recession. C. start of the recession and the time it takes to recognize that the recession has started. D. time fiscal action is taken and the time that the action has its effect on the economy.
An investment opportunity has two possible outcomes, and the value of the investment opportunity is $250. One outcome yields a $100 payoff and has a probability of 0.25. What is the probability of the other outcome?
A) 0 B) 0.25 C) 0.5 D) 0.75 E) 1.0
A rise in price will always result in an increase in the total amount consumers spend on a product
a. True b. False Indicate whether the statement is true or false