A drought causes most fruit crops to fail, decreasing the amount of available fruit. The fruitcake market would see:
A. an increase in the supply of fruitcake.
B. a decrease in the supply of fruitcake.
C. no change in the supply of fruitcake, but the demand would increase.
D. no change in the supply of fruitcake, but the demand would decrease.
B. a decrease in the supply of fruitcake.
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If a tariff of $10 has no effect on the world price, the optimal tariff on that product
A) is $10. B) is zero. C) is higher than $10. D) depends upon the amount of government revenue collected.
Which of the following did the 1986 Tax Reform Act not intended to do?
a. lower marginal tax rates b. broaden the tax base c. keep average tax rates the same d. reduce the bias towards saving
When producers would have been willing to accept lower prices at various quantities produced than the market clearing price, the differences are called
A) producer surplus. B) monopoly profits. C) opportunity cost. D) deadweight loss.
By comparing the value of marginal product with the marginal cost per input, a firm can find the:
A. cost-maximizing quantity to hire. B. profit-maximizing quantity to hire. C. revenue-maximizing quantity to hire. D. output-maximizing quantity to hire.