Average fixed cost is
A) AC minus AVC.
B) TC divided by Q.
C) AVC minus MC.
D) TC minus TVC.
A
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Supply-side economics is based on the idea that reducing taxes has the effect of benefiting society as a whole.
a. true b. false
For widgets, the supply curve is the typical upward-sloping straight line, and the demand curve is the typical downward-sloping straight line. A tax of $15 per unit is imposed on widgets. The tax reduces the equilibrium quantity in the market by 300 units. The deadweight loss from the tax is
a. $1,750. b. $2,250. c. $3,000. d. $4,500.
An example of a benefits-received tax would be ______.
a. a launching permit to use a boat in a public lake b. a portion of federal income tax used for national defense c. a progressive income tax d. a sales tax
Table 29-1Effects of an open-market transaction on the balance sheets of banks and the fed (in millions of dollars) Banks ? Federal Reserve System ? Assets Liab. Assets Liab. Reserves +$10 ? U.S. Gov’t Bank Reserves U.S. Gov’t ? Sec. +$10 +$10 Securities?$10 ? ? ? ? In Table 29-1, if the required reserve ratio is 10 percent, what will happen to the money supply? Use the oversimplified money multiplier in your calculations.
A. The money supply will decrease by $100 million. B. The money supply will decrease by $10 million. C. The money supply will not change. D. The money supply will increase by $10 million. E. The money supply will increase by $100 million.