Suppose the government places a per-unit tax on a good. The smaller the price elasticities of demand and supply for the good, the
a. smaller the deadweight loss from the tax.
b. greater the deadweight loss from the tax.
c. less efficient is the tax.
d. more equitable is the distribution of the tax burden between buyers and sellers.
a
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The contribution of ________ to federal tax receipts is larger than the contribution of ________
A) personal income taxes; corporate income taxes B) corporate income taxes; payroll taxes C) corporate income taxes; personal income taxes D) excise taxes; social insurance taxes
By shutting down when price is less than average variable cost at the profit-maximizing level of output, a perfectly competitive firm will limit its losses to its:
A) total variable costs. B) total costs. C) total fixed costs. D) marginal costs.
Suppose a player in a game has a dominant strategy, but they threaten to take another action. Can this threat be credible?
A) No, such threats are never credible to other rational players. B) No, if the player has a dominant strategy, they must take this action. C) Yes, if they can link the current game to another bargaining problem in which their joint strategy for the combined games is rational. D) Yes, dominant strategies may not always yield the highest payoffs.
Brandi loves cookies. She receives 200 utils for one cookie, 360 for two cookies, 490 for the third, 560 for four cookies, and 600 for five cookies. The marginal utility of the third cookie is
A. 490. B. 70. C. 130. D. cannot be determined.