If the market price for a good produced by a price taking firm is $7, the firm's total revenue is
A. downward sloping.
B. a flat line at P=$7.
C. an upward sloping line beginning at the origin and having a slope of 7.
D. parabolic.
Answer: C
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If government raised taxes on the rich and this resulted in a decrease in productivity, the increase in taxes will still definitely make society better off
Indicate whether the statement is true or false
Enforcement of antitrust policy is the responsibility of
A) the Trust Division of Congress and the World Trade Organization. B) the Federal Trade Commission and the Antitrust Division of the Department of Justice. C) the World Trade Organization and the FDA. D) the Food and Drug Administration and Congress.
Based on the above table, which shows the firms and sales in an industry, what is the approximate value of the Herfindahl-Hirschman Index?
A) 1,660 B) 2,300 C) 4,800 D) 10,000
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?