If the MPS is 0.8 and t is 0.3, then the tax multiplier is about -1.03.
Answer the following statement true (T) or false (F)
False
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Which market type has characteristics as follows: large number of firms, differentiated product?
A) perfect competition B) monopolistic competition C) oligopoly D) monopoly
Assume a perfectly competitive firm is producing 500 units of output, P = $7, ATC of the 500th unit is $6, marginal cost of the 500th unit = $7, and AVC of the 500th unit = $5. Based on this information, the firm is:
A) earning an economic profit of $500. B) earning an economic profit of $1,000. C) incurring a loss of $500. D) incurring a loss of $1,000.
Many college football teams require a "donation" in order to purchase season tickets. This is
A) price gouging. B) a tie-in sale. C) two part pricing. D) anti-competitive behavior.
An example of a market subject to adverse selection would be:
A. the used car market. B. the insurance market. C. the financial market. D. All of these statements are true.