In the above table, which tax plan is progressive?
A) only plan A
B) only plan B
C) only plan C
D) both plan B and plan C
Ques. 2In the figure above, the deadweight loss when the market is a single-price monopoly rather than perfectly competitive is the area of
A) triangle aeb.
B) triangle aic.
C) triangle eig.
D) triangle eif.
Ques. 3In the short run
A) all inputs are variable.
B) all firms experience increasing returns to scale.
C) some firms experience economies of scale.
D) no firm experiences economies of scale.
Ques. 4Ebay is an online auction site where individual buyers and sellers receive feedback on their how well they conducted their transaction. This feedback is public available. What is the purpose of this feedback?
A) It is a signal that the buyer or seller is reliable.
B) To reduce credit risk of a faulty buyer
C) To reduce default risk of a faulty seller
D) It is a tool to prevent moral hazard.
Ques. 5Kristen has an income of 450 per year to spend on music CDs and movies on DVDs. The price of a CD is 15 and the price of a DVD is 22.50. The indifference curves in the figure above (I1, I2, and I3 ) reflect Kristen's preferences.
What is Kristen's best affordable combination of DVDs and CDs? A) 10 DVDs and 15 CDs per year
B) 15 DVDs and 12 CDs per year
C) 12.5 DVDs and 12 CDs per year
D) 5 DVDs and 18 CDs per year
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