Taxes levied on a firm's earnings ________ the effective cost of funds
A) lower
B) raise
C) have no effect
D) none of the above
B
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To increase gas mileage, automobile manufacturers make cars small and light. Large cars absorb more of the impact of an accident than small cars but yield lower gas mileage
These facts suggest that a positive relationship exists between safety and gas mileage. Indicate whether the statement is true or false
The historical record for the United States since 1900 shows
A) mostly positive economic growth, with two substantial periods of negative economic growth. B) economic growth for about half the years and economic decline for the other half. C) growth until 1970 and then a period of constant per capita real GDP. D) continuous economic growth, although at different rates, throughout the entire century.
Which of the following examples has the highest opportunity cost?
a. When interest rates are at 10 percent, Krisjan places all of his wages into a checking account. b. Katrin considers placing money in a Treasury Bill with interest of 7 percent, but decides against it. c. Gunnar decides not to invest in a CD that has an interest rate of 5 percent. d. When interest rates are at 3 percent, Freyja decides to use her money for everyday expenses.
Which of the following statements comparing monopoly with competition is correct?
a. A monopolist produces a higher level of output and charges a lower price than a competitive firm would. b. With perfect price discrimination, the total surplus under monopoly can be the same as under competition. c. With or without price discrimination, the consumer surplus under monopoly is at least as large as it would be under competition. d. The deadweight loss associated with monopoly is caused by the positive economic profits of the monopolist; competitive firms do not earn a positive economic profit so there is no deadweight loss under competition.