Refer to Figure 18-2. If the government imposes an excise tax of $1.00 on every unit sold, the government's revenue from the tax
A) is larger if the supply curve is S0. B) is identical under either supply curve.
C) is larger if the supply curve is S1. D) is not maximized.
C
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The goal of the firm is
A) low labor turnover. B) to maximize sales. C) to minimize costs. D) profit maximization.
In order to compute national income from GDP,
a. national income is first calculated, and then depreciation of capital and indirect business taxes are subtracted from it to get GDP. b. GDP is first calculated, and then gross private domestic investment is subtracted from it to get national income. c. GDP is first calculated, and then capital depreciation and proprietors' income are subtracted from it to get national income. d. GDP is first calculated, and then depreciation of capital is subtracted from it to get national income.
Suppose the numbers in parentheses represent two points on a line: (59 billion quarts; $4) and (78 billion quarts; $6). The line is most likely a
a. production possibilities frontier for milk. b. supply curve for milk. c. demand curve for milk. d. ray through the origin. e. time series line.
Tommy spends most of his monthly budget on $3 video game rentals or $6 packets of baseball cards. The opportunity cost to Tommy of an extra packet of baseball cards is
A. one video game rental. B. two video game rentals. C. the cost of the baseball cards. D. he does not incur an opportunity cost.