Economists Novy-Marx and Rauh contend that if San Francisco wanted to adequately fund its pension systems for its public workers, it would have to put on
A. a one-time tax of nearly $35,000 per household.
B. an annual tax of only $35 per household.
C. an annual tax of nearly $35,000 per household.
D. a one-time tax of nearly $350,000 per household.
Answer: A
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In an increasing-cost industry the long-run supply curve is upward sloping
Indicate whether the statement is true or false
An incumbent's threat to use limit pricing if a firm enters the market
A) is credible if the firms have identical costs and market demand supports both firms. B) is credible if the firms have different costs and market demand won't support both firms. C) is not credible if the firms have different costs and market demand won't support both firms. D) is cheap talk, because the other firm will enter and the incumbent will still be able to charge monopoly pricing.
A price-taking firm's variable cost function is C = Q3, where Q is the output per week. It has an avoidable fixed cost of $1,024 per week. Its marginal cost is MC = 3Q2. What is the profit maximizing output if the price is P = $192?
A. 0 or 5.33 or 8 B. 5.33 or 8 C. 0 or 5.33 D. 0 or 8
Your professor loves her work, teaching economics. She has been offered other positions in the corporate world that would increase her income by 25 percent, but she has decided to continue working as a professor. Her decision would not change unless
a. the marginal cost of teaching increased. b. the marginal benefit of teaching increased. c. the marginal cost of teaching decreased. d. the marginal benefit of a corporate job decreased.