A factor of production that cannot be easily changed in the relevant time period is called a A) short-run factor. B) fixed input. C) variable input. D) production anchor. ANSWER B
Date: September 9th, 2020
The supply curve A) represents the quantity supplied at any given price. B) represents the quantity actually sold at any given price. C) is the opposite of the demand curve. D) always intersects the demand curve. ANSWER A
Date: September 9th, 2020
From the 1960s to the early 1990s, marginal tax rates _____. a. varied, but not in a consistent direction b. steadily declined c. steadily increased d. remained relatively constant ANSWER b
Date: September 9th, 2020
A stock mutual fund is generally A) less risky than buying individual stocks. B) more risky than buying individual stocks. C) just as risky as buying individual stocks. D) a way for the rich to avoid taxes. ANSWER A
Date: September 9th, 2020
A profit maximizing firm selects output such that A) average profit is maximized. B) total profit is maximized. C) marginal profit is maximized. D) Both A and B. ANSWER B
Date: September 9th, 2020
_____occurs when the burden of a tax statutorily placed on one party is borne by another party. a. Tax shifting b. Tax evasion c. Tax avoidance d. Tax amnesty ANSWER a
Date: September 9th, 2020
At Albert’s Pretzel Company, MPL = 1/L, and MPK = 1/K. The isoquant for 100 pounds of pretzels daily is shown in the above figure. Albert minimizes the cost of producing 100 pounds of pretzels daily by hiring 5 units of labor and 10 units of capital when w = 50 and r = 25. […]
Date: September 9th, 2020
Generally speaking, the Tiebout model is _____. a. the idea that intergovernmental competition reveals consumer preferences for public goods b. the idea that the lack of mobility can be offset by intergovernmental comparison c. the idea that intergovernmental competition is Pareto superior d. the idea that mobility is not necessary to intergovernmental competition ANSWER […]
Date: September 9th, 2020
If the market interest rate is 5% and a bank advertises loans at 12%, the bank will receive A) no applications. B) applications from mostly low-risk borrowers. C) applications from mostly high-risk borrowers. D) a moral hazard. ANSWER C
Date: September 9th, 2020
Which of the following statements about profit maximizing firms in a competitive market is FALSE? A) Firms earn no economic profit in the long run. B) Marginal revenue does not have to equal marginal cost. C) p – MC = 0. D) Price equals marginal revenue. ANSWER B
Date: September 9th, 2020
