Government regulations A) have no impact on supply. B) only change the quantity supplied, not the supply curve. C) are generally ineffective due to lobbying by suppliers. D) can change both quantity supplied as well as the supply curve. ANSWER D
Date: September 9th, 2020
Who will bear the burden of a $0.05 tax placed on soda suppliers (consumer or seller) in a soda market where Qd = 225-10P and Qs = 50 + 15P? A) Consumers pay $0.30 of the tax, bearing the burden. B) Consumers pay $0.25 of the tax, bearing the burden. C) Sellers pay $0.20 of […]
Date: September 9th, 2020
The 2002 federal tax cuts _____. a. were based on efficiency considerations b. were based on equity considerations c. were based on budgetary considerations d. did not have a clear motivation ANSWER d
Date: September 9th, 2020
When a unit tax is placed on suppliers they are generally able to _____. a. lobby to get the tax repealed b. shift the tax payment to the demanders c. shift part of the tax burden to the demanders in the form of a secondary tax d. shift part of the tax burden to the […]
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
A firm that engages in efficient production A) cannot produce the same output with fewer inputs. B) could produce the same output with fewer inputs if it wanted to. C) is not interested in profit maximization. D) uses old technology to minimize costs. ANSWER A
Date: September 9th, 2020
Many small governments provide more utility to individuals than one large government in most cases because _____. a. individuals have heterogeneous preferences and can move to an area that suits their taste for government b. individuals have homogeneous preferences and can move to an area that suits their taste for government c. the optimal sharing […]
Date: September 9th, 2020
The Tax Reform Act of 1986 was concerned with _____. a. fiscal stabilization b. macroeconomic policy c. equity considerations d. efficiency considerations ANSWER d
Date: September 9th, 2020
Legislators are indifferent about placing a unit tax on the suppliers of a good or the demanders. If a tax is placed on the suppliers of the good _____ a. suppliers will pay the entire tax b. suppliers will pay more than if the tax were initially placed on the demanders c. suppliers will pay […]
Date: September 9th, 2020
