07 Jun Question Airport noise pollution costs that are directly borne by producers or their actual customers are:
Question
Airport noise pollution costs that are directly borne by producers or their actual customers are:
Answer
A.
marginal costs of production.
B.
marginal external costs.
C.
marginal social costs.
D.
opportunity costs.
7. Minimum efficient scale will decrease if:
Answer
A.
fixed costs increase.
B.
transportation costs increase in relation to production costs.
C.
transportation costs decrease in relation to production costs.
D.
variable costs decrease.
Question 10
For two projects with the same cost, the one that is more risky has the:
Answer
A.
lowest standard deviation.
B.
lowest expected profit.
C.
highest standard deviation.
D.
highest expected profit.
Question 14
The law of diminishing returns implies that:
Answer
A.
a given percentage increase in all inputs leads to that same percentage increase in output.
B.
a given percentage increase in all inputs leads to that same percentage increase in output.
C.
output increases at a rate less than the proportionate increase in inputs.
D.
none of these.
Question 15
Which of the following is true about the tax incidence and tax burden of an increase in tax?
Answer
A.
The tax incidence of a tax is always equivalent to its ultimate tax burden.
B.
If the demand curve is more elastic than the supply curve, consumers will bear the majority of the burden of an increase in a tax placed on buyers.
C.
If the demand curve is much more inelastic than the supply curve, then buyers will shoulder more of the burden of a tax placed on suppliers of a product.
D.
The elasticity of demand and supply curves has no relevance for the ultimate tax burden.
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