Majority voting assures that government will provide a public good if it yields total benefits in excess of total costs
A. buyer responsiveness to price changes.
B. the extent to which a demand curve shifts as incomes change.
C. the slope of the demand curve.
D. how far business executives can stretch their fixed costs.
Answer: A
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If the nominal interest rate is 10% and expected inflation is 5%, the real expected interest rate is
A) 15%. B) -5%. C) 5%. D) 10%.
What is the difference between defensive and dynamic open market operations?
What will be an ideal response?
Based on the above scenario, is the industry in the long run equilibrium?
a. yes, because all firms are producing at P=MR=MC b. no, because the price is still greater than the minimum average total cost. c. cannot answer because need information on MR d. cannot answer unless we see that the market lets some firms enter and/or some firms exit.
If the federal government placed a 50 cent per pack excise tax on cigarette manufacturers, and if as a result, the price to consumers of a pack of cigarettes went up by 40 cents, the:
a. actual burden of this tax falls mostly on consumers. b. actual burden of this tax falls mostly on manufacturers. c. actual burden of the tax would be shared equally by producers and consumers. d. tax would clearly be a progressive tax.