On the upward sloping portion of a firm's long-run average cost curve, it is experiencing
A. constant returns to scale.
B. diminishing marginal returns.
C. diseconomies of scale.
D. economies of scale.
Answer: C
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The quantity of U.S. dollars supplied in the foreign exchange market is
A) the same as the quantity of for U.S. dollars demanded. B) negatively related to the exchange rate. C) fixed at any given exchange rate. D) unrelated to the exchange rate. E) positively related to the exchange rate.
The present value of $100 to be received in a year is
A) less than $100 and falls as the interest rate rises. B) less than $100 and rises as the interest rate rises. C) more than $100 and falls as the interest rate rises. D) more than $100 and rises as the interest rate rises.
If Jenny’s taxes are $10,000 when she earns $50,000 and $12,000 when she earns $60,000, then
A. Jenny faces a progressive tax. B. Jenny faces a regressive tax. C. Jenny faces a proportional tax. D. Jenny faces a rising marginal tax rate.
Briefly explain the benefits-received principle and why it does not work well for pubic goods. Give an example that is not in the text.
What will be an ideal response?