The federal income tax is consistent with the __________ principle of taxation, whereas an excise tax on sporting event tickets is consistent with the ___________ principle of taxation
A. benefits-received; ability-to-pay.
B. benefits-received; pay-as-you-go.
C. ability-to-pay; benefits-received.
D. ability-to-pay; pay-as-you-go.
Answer: C
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A monopoly:
a. faces the market demand curve which is downward sloping. b. has a marginal revenue curve which slopes downward and lies below its demand curve. c. will maximize profits by producing an output level where MR = MC. d. all of these.
Why do the British supply pounds to the dollar-pound market?
a. To buy goods and services from American firms. b. To buy American assets. c. To buy stock in American firms on the London stock exchange. d. Both (a) and (b) are correct. e. None of the above.
If marginal profit is zero, then total profit is at a maximum
a. True b. False Indicate whether the statement is true or false
For each watch Denmark produces, it gives up the opportunity to make 50 pounds of cheese. Germany can produce one watch for every 100 pounds of cheese it produces. Which of the following is true with regard to opportunity costs in the two countries?
a. The opportunity cost of producing watches is higher in Denmark. b. The opportunity cost of producing cheese is higher in Denmark. c. The opportunity cost of producing cheese is identical in both countries. d. It is impossible to compare opportunity costs because the two countries use different currencies. e. In both countries combined, the opportunity cost of one watch is 150 pounds of cheese.