Refer to the above figures. Which panel represents the expected relationship between tax revenue and the sales tax rate if dynamic tax analysis is used?
A) Panel 1
B) Panel 2
C) Panel 3
D) Panel 4
C
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Refer to the demand and supply equations. At a price of $5, there will be ________
Fill in the blank(s) with correct word
A car rental company will earn a net income of $6,000 per year on a new car for the first three years of its life. After three years, the car will be worthless. If the interest rate is 10 percent (0.10) per ear, what is the present value of the car to the car rental company? (Assume that each year's income is received at the end of the year.)
a. $16,413.22 b. $14,921.11 c. $18,000.00 d. $16,363.62 e. $13,523.67
Suppose that over time, consumers used discount stores at an increasing rate, the CPI would tend to be
a. accurate b. underestimated because consumers would buy goods and services at lower prices than those collected by the BLS c. underestimated because consumers would buy goods and services at higher prices than those collected by the BLS d. overestimated because consumers would buy goods and services at lower prices than those collected by the BLS e. overestimated because consumers would buy goods and services at higher prices than those collected by the BLS
At the profit-maximizing level of output for a perfectly competitive firm, price equals marginal cost. Which of the following is also true?
A) The difference between total revenue and total cost is the greatest. B) Total revenue equals total cost. C) Average revenue equals average total cost. D) Marginal profit equals marginal cost.