Suppose that newspaper companies are now required to use recycled paper, which is more expensive than new paper. Which of the following is most likely to result if the newspaper industry is highly competitive?
A) The firms' costs rise, resulting in positive economic profit in the short run and, hence, the industry supply curve shifts rightward in the long run.
B) The firms' costs rise, resulting in economic losses in the short run and, hence, the industry supply curve shifts rightward in the long run.
C) The firms' costs rise, resulting in economic losses in the short run and, hence, the industry supply curve shifts leftward in the long run.
D) The industry supply curve shifts leftward in the short run, causing permanent long-run economic losses.
C
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The U.S. federal government spent more than $4 trillion in 2018, which implies that there were no opportunity costs faced by the United States.
Answer the following statement true (T) or false (F)
Line item budgets _____
a. do not provide any insight into the effectiveness of expenditures b. are good for evaluating the effectiveness of programs c. allow expenditures to change gradually over time d. give insight into overall trends in agency expenditures
Why does excessive fishing occur?
a) Fishermen are concerned about the population dynamics of fish biomass, not current harvest rates. b) Fishermen have other marketable skills and do not fear exploitation of fish reserves. c) Each individual fisherman has little incentive to maintain the species for the next year. d) Fishermen rely on government managers to worry about fish populations.
Refer to Scenario 19.2 below to answer the question(s) that follow.SCENARIO 19.2: An individual earning $40,000 pays $3,200 in taxes. The marginal tax rate on any income earned above $40,000 is 20%.Refer to Scenario 19.2. When this person earns $60,000, her average tax rate is
A. 12%. B. 14%. C. 20%. D. indeterminate from this information.