If the government places a $1500 tax on each hybrid car sold
A) consumers will stop buying hybrid cars.
B) the supply curve will shift left by up to $1500, depending on the price elasticity of demand.
C) the supply curve will shift to the right by $1500.
D) None of the above.
D
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Resource use is allocatively efficient when
A) we produce the goods with the highest opportunity cost. B) we produce the goods with the lowest opportunity cost. C) we cannot produce more goods and services. D) we produce the amount of the different goods we value most highly.
Suppose a manufacturer of software develops a new computer program that sells for $50
The $50 cost includes $0.25 for the CD it is stored on, $5 for the labor of the company software programmers, and $1.75 for packaging materials and transportation costs. Value added by the software company is A) $49.75. B) $48.25. C) $48. D) $44.75. E) $43.
Money is created through the banking processes of taking deposits and making loans if
A) the banks require individual depositors to hold "reserves." B) the banks require individual borrowers to hold "reserves." C) paper deposit receipts are not acceptable means of payment. D) paper deposit receipts are accepted as a means of payment.
In the dominant firm model, the smaller fringe firms behave like:
A) competitive firms. B) Cournot firms. C) Stackelberg firms. D) Bertrand firms. E) monopolists.