If the government levies a $5 tax per MP3 player on buyers of MP3 players, then the price paid by buyers of MP3 players would likely
a. increase by more than $5.
b. increase by exactly $5.
c. increase by less than $5.
d. decrease.
c
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The median voter theorem will be an accurate predicator of the outcomes of elections
A) when a majority of voters have preferences very similar to those of the median voter. B) only when voter turnout is very high. C) when a majority of voters have preferences different from those of the median voter. D) regardless of whether preferences among voters are similar or different from those of the median voter.
Firms might vertically disintegrate when
A) it becomes more profitable for a firm to specialize. B) the IRS cracks down on transfer pricing. C) the industry becomes too large to support itself. D) the industry shrinks in size.
Ida May Fuller was the first person to:
A. receive a Social Security check. B. have her Social Security check adjusted for inflation. C. receive Social Security payments for over 20 years. D. petition Congress for indexing Social Security payments.
The demand curve of a monopolistically competitive firm
A) is horizontal because the firm must cut its price to sell more. B) is perfectly elastic. C) is downward-sloping because it sells an identical product. D) is downward-sloping because it must cut its price to sell more.