A per-unit government tax on producers of a good tends to
A. increase the supply of the good.
B. not have any effect on the good's supply.
C. cause an upward movement along the supply curve.
D. reduce the supply of the good.
Answer: D
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A downward-sloping portion of a long-run average total cost curve is the result of:
a. economies of scale. b. diseconomies of scale. c. diminishing returns. d. the existence of fixed resources.
Which of the following would be included in the capital account section of the balance of payments?
a. government bond purchases by people in other countries b. net investment income c. imports and exports of goods d. imports and exports of services
Imagine that you are an entrepreneur, making designer t-shirts in your garage. Your total cost (in dollars) is given by the equation TC = 300 + 10Q, where Q represents the number of t-shirts you make. As you increase your production of t-shirts, your average fixed cost ________ and your marginal cost ________.
A. increases; decreases B. stays the same; increases C. decreases; increases D. decreases; stays the same
What effect might the depreciation of the U.S. dollar relative to the Japanese yen have on imports and exports to and from each country?
What will be an ideal response?