A firm's producer surplus equals its:
A. profit less its avoidable costs.
B. revenue less its avoidable costs.
C. profit less sunk costs.
D. revenue less sunk costs.
B. revenue less its avoidable costs.
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The Congressional Budget Office estimates that the additional taxes and fees enacted under the ACA will be enough to pay for the plan and reduce the federal government's budget deficit
Indicate whether the statement is true or false
Which of the following is NOT a result of the double taxation of dividends?
A) Because profits that firms distribute to stockholders are taxed a second time, firms have an incentive to retain profits rather than to distribute them to stockholders. B) The return investors receive from buying stocks is reduced, which reduces the incentive people have to save in the form of stock investments and increases the costs to firms of raising funds. C) It gives firms an incentive to take on what may be an excessive level of debt rather than issue stock. D) The decline in retained profits results in increased inefficiency.
Economists use ____ economic analysis to understand an individual market. They then use ____ economic analysis to guide future national economic policy
a. b and d b. macro; micro c. positive; normative d. normative; positive
The commercial banks on Sunny Island have checking deposits of $4 million, reserves of $600,000, and loans of $2.4 million. The required reserve ratio is 10 percent. The banks have ________ of required reserves and ________ of excess reserves
What will be an ideal response?