Refer to the figure above. What price does the firm face in the market?
A) $2
B) $4
C) $6
D) $8
D
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A compulsory payment to government that is generally linked to engaging in some activity is referred to as a
A) tax. B) subsidy. C) deadweight loss. D) quota.
Physical capital is distinguished from human capital because
A) physical capital refers to trained people. B) physical capital refers to equipment and machinery, whereas human capital refers to trained people. C) human capital refers only to day laborers. D) physical capital refers to trained people, whereas human capital refers to equipment and machinery.
If the marginal propensity to consume is 0.75 and autonomous consumption spending will decrease by $30 billion, by how much would net taxes need to decrease in order to have no change in output? (Ignore any timing issues.)
a. $60 billion b. $30 billion c. $90 billion d. $120 billion e. $40 billion
Assume that the producers of an input have substantial economies of scale in their production process. This input is purchased mainly by a group of firms in a perfectly competitive market that is initially in long-run equilibrium. After all long-run adjustments are made, which of the following would occur in the competitive output market as a result of shift in consumer tastes toward that
market's product? a. The market price would fall; the market quantity would rise. b. The market price would rise; the market quantity would fall. c. The market price would remain unchanged; the market quantity would fall. d. Both the market price and the market quantity would fall. e. Both the market price and the market quantity would rise.