Suppose cars are taxed according to the amount of pollution they emit per gallon of gasoline consumed. We would expect to observe all of the following EXCEPT
A) an increase in quantity demanded of less-polluting automobiles and a reduction in quantity demanded of more-polluting automobiles.
B) an increase in quantity demanded of more fuel-efficient cars.
C) an increase in production of automobiles that were less polluting.
D) an increase in the miles driven.
Answer: D
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Suppose Winston's annual salary as an accountant is $60,000, and his financial assets generate $4,000 per year in interest. One day, after deciding to be his own boss, he quits his job and uses his financial assets to establish a consulting business, which he runs out of his home. To run the business, he outlays $8,000 in cash to cover all the costs involved with running the business, and earns revenues of $150,000. What are Winston's implicit costs?
A. $64,000 B. $72,000 C. $4,000 D. $60,000
According to economic theory, profits are maximized at the rate of output where
A) price equals total revenue. B) marginal revenue equals marginal cost. C) economic profits are zero. D) price and marginal revenue are equal.
In any one year, the Social Security taxes collected by the government must necessarily equal the Social Security payments that the government makes
Indicate whether the statement is true or false
Frictional unemployment is:
A. unemployment caused by workers who are changing their location, job, or career. B. a mismatch between the skills workers can offer and the skills that are in demand. C. the most alarming cause of unemployment. D. the effect of wages remaining persistently above the market-clearing level.