A pollution tax:
A. decreases the price of the good taxed.
B. increases the price of the good taxed.
C. does not affect the quantity demanded of the good taxed.
D. does not affect the price of the good taxed.
Answer: B
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What is the total cost, at the level of production where Pastry Paradise is indifferent between which technology is used?
a. $1750 b. $1000 c. $1500 d. $2000
Over the past five years, the population growth rate in Kabir’s country has been rising rapidly. How is this most likely impacting the country’s capital stock?
a. Capital stock per worker is increasing. b. Capital stock per worker is fluctuating rapidly. c. Capital stock per worker is declining. d. The population growth rate is not affecting the country’s capital stock.
All of the following are regulatory agencies EXCEPT
A) the National Rifle Association. B) the Environmental Protection Agency. C) the Food and Drug Administration. D) the Occupational Safety and Health Administration.
Let us suppose Harry's, a local supplier of chili and pizza, has the following revenue and cost structure:
A. Harry's should stay open in the long run
B. Harry's should shut down in the short run
C. Harry's should stay open in the short run
D. Harry's should shut down in the short run but reopen in the long run