A local telephone company charges $.10/min. based on a $.08/min. marginal cost of operation. What is the Lerner index?
A. 0.25
B. 0.50
C. 0.40
D. 0.2
Answer: D
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Your authors argue that, since the 1960s in the U.S
A) poverty has substantially decreased. B) inequality has substantially increased. C) poverty has substantially increased. D) inequality has substantially decreased.
A firm will continue hiring labor until the MRP of labor _______ the price of labor.
A. is equal to B. determines C. is less than D. is greater than
When the invisible hand does not produce optimal outcomes for the economy, there is evidence of
A. Government failure. B. Scarcity. C. Market failure. D. Macroeconomic failure.
Which of the following would be classified as fiscal policy?
A) The federal government passes tax cuts to encourage firms to reduce air pollution. B) The Federal Reserve cuts interest rates to stimulate the economy. C) A state government cuts taxes to help the economy of the state. D) The federal government cuts taxes to stimulate the economy. E) States increase taxes to fund education.