The imposition of a per unit tax on a product
A) will cause the supply curve to shift downward and to the right.
B) will cause the supply curve to shift upward and to the left.
C) will reduce the quantity supplied of the product.
D) will encourage producers to increase the quantity supplied of the product.
Answer: B
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An American firm that buys foreign exchange because its managers expect the dollar to depreciate is
A) increasing the supply of foreign exchange. B) increasing the demand for foreign exchange. C) speculating. D) Both A and B. E) Both B and C.
Pricing an option involves an application of all of the following except:
a. the Black-Scholes Model. b. the law of one price. c. the assumption that there are no unexploited profit opportunities. d. the assumed probability that the stock price will go up.
Explain the difference between productive efficiency and allocative efficiency. How do these efficiencies relate to monopolistic competition?
What will be an ideal response?
To the economist, total cost includes:
A. explicit and implicit costs, including a normal profit. B. implicit, but not explicit, costs. C. neither implicit nor explicit costs. D. explicit, but not implicit, costs.