What is a government attempting to do by charging a gasoline tax?
a. Reduce the number of free riders who use public roads
b. Encourage private firms to develop public goods
c. Discourage free riders from using toll roads
d. Shift the demand for gasoline to reduce consumption
a. Reduce the number of free riders who use public roads
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Robert Tadmur exports processed turkey and has an upward sloping supply curve. The supply curve indicates that Robert faces a marginal cost of $0.25 or less per pound for supplying the first few pounds. But every producer in this market sells turkey at the market clearing price of $0.50 per pound. The difference between the actual amount that Robert receives and what he would accept to supply the
market clearing quantity is called a. consumer surplus b. importer surplus c. producer surplus d. trade deficit e. average variable cost
It is possible to increase our consumption of a clean environment without giving up anything
a. True b. False Indicate whether the statement is true or false
Economists assume that business firms have many goals, and profit maximization is just one of them.
Answer the following statement true (T) or false (F)
Suppose that monetary neutrality and the Fisher effect both hold. An increase in the money supply growth rate increases
a. the inflation rate and the nominal interest rate by the same number of percentage points. b. nominal interest rates but by less than the percentage point increase in the inflation rate. c. the inflation rate but not the nominal interest. d. neither the inflation rate nor the nominal interest rate.