If everyone pays a fixed dollar amount of tax, then the tax is a
A. regressive tax.
B. personal tax.
C. marginal tax.
D. proportional tax.
Answer: A
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A firm sells 1000 units per week. It charges $70 per unit, the average variable costs are $25, and the average costs are $65 . In the long run, the firm should
a. Shut down since price is greater than average cost b. Continue operating price is higher than average cost, its making a profit c. Continue operating as the firm is covering all the variable costs and some of the fixed costs d. Shut-down because it is cost effective to pay off the remaining fixed costs
If the government's goal is to generate a certain amount of tax revenue, a specific tax and an ad valorem tax on a monopoly have the same impact on social welfare
Indicate whether the statement is true or false
Suppose the price of oranges rises. As a result, the
A) supply of orange pickers increases. B) supply of orange pickers decreases. C) demand for orange pickers increases. D) demand for orange pickers decreases.
Laqueta buys a new GPS device for her car for $135 . She receives consumer surplus of $25 on her purchase if her willingness to pay is
a. $25. b. $110. c. $135. d. $160.