Suppose Rebecca needs a dog sitter so that she can travel to her sister's wedding. Rebecca values dog sitting for the weekend at $200 . Susan is willing to dog sit for Rebecca so long as she receives at least $175 . Rebecca and Susan agree on a price of $185 . Suppose the government imposes a tax of $30 on dog sitting. The tax has made Rebecca and Susan worse off by a total of
a. $30.
b. $25.
c. $10.
d. $5.
b
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If the AC curve in the above graph represents the minimum of the average total cost curve, then examples of X-inefficiency would best be represented by point:
A. A at output level Q1 and point B at output level Q2. B. E at output level Q2 and point F at output level Q3. C. A at output level Q1 and point D at output level Q1. D. D at output level Q1 and point C at output level Q3.
What are the main components of the current account? What has been the recent U.S. experience with these items?
What will be an ideal response?
Suppose the price of an item in a perfectly competitive market is $3. For a firm in this market, MC = MR at an output of 100 units. The average total cost at this output level is $4 per unit, and TVC is $80. We may conclude that
A) the firm should shut down because TC > TR. B) the firm should continue to produce because P>AVC. C) the firm should shut down because its TFC is $320 and its TC is $400. D) the firm should shut down because other firms will enter the industry as the market is perfectly competitive.
Compounding is:
A. the process of accumulation of additional interest paid on interest that has already been earned. B. the process of adding the percentage of interest times your initial principal yearly. C. the process of deposits steadily increasing a set amount annually. D. None of these statements is true.