Fantastic growing conditions that produce a bumper crop of oranges on each tree this year will definitely make the short run supply of oranges more price elastic.
Indicate whether the statement is true or false
Ques. 2Regressive income taxes are
A) an important form of income redistribution.
B) present when the average tax rate decreases as income decreases.
C) present when the average tax rate decreases as income increases.
D) Both answers A and B are correct.
Ques. 3A consumer's total utility is maximized when the total utility per dollar from all goods is equalized.
Indicate whether the statement is true or false
Ques. 4Dustin's copy shop can use four alternative plants. The figure above shows the average total cost curves for Plant 1 (ATC1), Plant 2 (ATC2), Plant 3 (ATC3), and Plant 4 (ATC4). Dustin's minimum efficient scale is
A) 2,650 copies per day.
B) 6,000 copies per day.
C) 4,000 copies per day.
D) More information is needed to determine the minimum efficient scale.
Ques. 5Mortgage insurance protects lenders when a borrower defaults by making up any shortfall needed to repay the loan if the sale of the property doesn't cover the debt.
Federally regulated lenders must have mortgage insurance on loans where the buyer's down payment is less than 20 per cent of the price. In this example, what signal do potential homeowners give to indicate they are low-risk? A) indicating high income
B) buying an expensive home
C) having a large down payment
D) buying an inexpensive home
Ques. 6For baseball memorabilia fans, the baseball with which Hank Aaron hit his 735th career home run is perfectly inelastic in supply and in demand.
Indicate whether the statement is true or false
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