After an excise tax is imposed on a good or service,
a. the equilibrium price and quantity are unchanged
b. firms must charge a higher price for any particular quantity
c. firms must charge a lower price for any particular quantity
d. the equilibrium price and quantity will both increase
e. the equilibrium price and quantity will both decrease
B
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"I don't feel so good. I shouldn't have had that last doughnut." Which statement best describes this situation?
a. The marginal utility of the last doughnut was positive. b. The marginal utility of doughnuts is still increasing. c. The total utility from eating doughnuts is negative. d. The marginal utility of the last doughnut was negative. e. The marginal utility of the next doughnut will be positive.
Military spending is a good example of an automatic stabilizer
a. True b. False Indicate whether the statement is true or false
The business cycle may hamper economic growth because it creates additional ________ for business owners.
A. unemployment B. stability C. risks D. inflation
As output expands from 199 to 200 units, total costs rise from $2,985 to $3,000. At this stage, the marginal cost and average cost of production are
A. $1 and $200. B. $1. C. $15 and $15. D. $29.85 and $15.00