ECON STUDY GUIDE
AACSB:Knowledge Application Accessibility: Keyboard Navigation
Blooms: Understand Difficulty: 02 Medium
LearningObjective: 20-07 Explainthe principles relatingto tax shifting,tax incidence, and the efficiency losses caused by taxes.
Test Bank:I Topic:Tax Incidence and Efficiency Loss
101.
In the figure, S is the before-tax supply curve and St isthe supply curve after an excise tax is imposed.The total tax collection from this excise tax will be area
A. ABCE + ECF.
B. ABCE.
ECF.
0BCG.
AACSB:Knowledge Application
Blooms: Understand Difficulty: 02 Medium
LearningObjective: 20-07 Explainthe principles relatingto tax shifting,tax incidence, and the efficiency losses caused by taxes.
Test Bank:I Topic:Tax Incidence and Efficiency Loss
Type: Graph
102.
In the figure, S is the before-tax supply curve and St isthe supply curve after an excise tax is imposed.The efficiency loss of this tax will be area
ABCE.
ABCE + ECF.
D. ECF.
AACSB:Knowledge Application
Blooms: Understand Difficulty: 02 Medium
LearningObjective: 20-07 Explainthe principles relatingto tax shifting,tax incidence, and the efficiency losses caused by taxes.
Test Bank:I Topic:Tax Incidence and Efficiency Loss
Type: Graph
103.
In the figure, S is the before-tax supply curve and St isthe supply curve after an excise tax is imposed.The burden of this tax is borne
A. equallyby consumers and producers.
B. most heavily by consumers.
most heavily by producers.
only by consumers.
AACSB:Knowledge Application
Blooms: Understand Difficulty: 02 Medium
LearningObjective: 20-07 Explainthe principles relatingto tax shifting,tax incidence, and the efficiency losses caused by taxes.
Test Bank:I Topic:Tax Incidence and Efficiency Loss
Type: Graph
The more inelastic are demand and supply,the
A. larger is the efficiencyloss of an excise tax.
B. smaller is the efficiency loss of an excise tax.
higher is the proportion of an excise tax paid by consumers.
smaller is the proportion of an excise tax paid by producers.
AACSB:Knowledge Application Accessibility: Keyboard Navigation
Blooms: Understand Difficulty: 02 Medium
LearningObjective: 20-07 Explainthe principles relatingto tax shifting,tax incidence, and the efficiency losses caused by taxes.
Test Bank:I Topic:Tax Incidence and Efficiency Loss
If the demand for a product isperfectly inelastic, the incidence of an excise tax will be
A. entirelyon the buyer.
mostly on the buyer.
entirely on the seller.
mostly on the seller.
AACSB:Knowledge Application Accessibility: Keyboard Navigation
Blooms: Understand Difficulty: 02 Medium
LearningObjective: 20-07 Explainthe principles relatingto tax shifting,tax incidence, and the efficiency losses caused by taxes.
Test Bank:I Topic:Tax Incidence and Efficiency Loss
The efficiencyloss of a tax is the idea that
A. in additionto taking income from the citizenry, taxes also increasethe rate of inflation.
B. taxes cause a decline in output for which marginalbenefit exceeds marginal cost.
taxes diminish incentives to work.
government spends dollars less efficiently than do householdsand businesses.
AACSB:Knowledge Application Accessibility: Keyboard Navigation
Blooms: Understand Difficulty: 02 Medium
LearningObjective: 20-07 Explainthe principles relatingto tax shifting,tax incidence, and the efficiency losses caused by taxes.
Test Bank:I Topic:Tax Incidence and Efficiency Loss
The greater the elasticity of supplyof and demand for a good, the
smaller will be the efficiency loss of an excise tax on the good.
more likely the good will be a public good rather than a private good.
C. larger will be the efficiencyloss of an excise tax on thegood.
D. larger will be the proportion of an excise tax on the good that will be shifted forward to consumers.
AACSB:Knowledge Application Accessibility: Keyboard Navigation
Blooms: Understand Difficulty: 02 Medium
LearningObjective: 20-07 Explainthe principles relatingto tax shifting,tax incidence, and the efficiency losses caused by taxes.
Test Bank:I Topic:Tax Incidence and Efficiency Loss
The efficiency loss of a tax is
A. the net value of sacrificed output caused by the tax.
that portion of the tax paid by producersminus the portion paid by consumers.
that portion of the tax paid by consumersminus the portion paid by producers.
the total tax revenue minus the output loss caused by the tax.
AACSB:Knowledge Application Accessibility: Keyboard Navigation
Blooms: Understand Difficulty: 02 Medium
LearningObjective: 20-07 Explainthe principles relatingto tax shifting,tax incidence, and the efficiency losses caused by taxes.
Test Bank:I Topic:Tax Incidence and Efficiency Loss
109.
In the diagram, S is the before-tax supply curve and St is the supply curve after an excise tax is imposed.The total tax payment to government is shown by area(s)
A only.
A +B + C + E + F.
C. A + B +C.
D. E + F.
AACSB:Knowledge Application
Blooms: Understand Difficulty: 02 Medium
LearningObjective: 20-07 Explainthe principles relatingto tax shifting,tax incidence, and the efficiency losses caused by taxes.
Test Bank:I Topic:Tax Incidence and Efficiency Loss
Type: Graph
110.
In the diagram, S is the before-tax supply curve and St is the supply curve after an excise tax is imposed. The total amount of the tax paid by consumersis shown by areas
A. A + B +F.
B. A + B.
A +B + C.
E + F.
AACSB:Knowledge Application
Blooms: Understand Difficulty: 02 Medium
LearningObjective: 20-07 Explainthe principles relatingto tax shifting,tax incidence, and the efficiency losses caused by taxes.
Test Bank:I Topic:Tax Incidence and Efficiency Loss
Type: Graph
111.
In the diagram, S is the before-tax supply curve and St is the supply curve after an excise tax is imposed.The total amount of the tax paid by producersis shown by area(s)
A. A + B +F.
B. C only.
A +B + C.
E + F.
AACSB:Knowledge Application
Blooms: Understand Difficulty: 02 Medium
LearningObjective: 20-07 Explainthe principles relatingto tax shifting,tax incidence, and the efficiency losses caused by taxes.
Test Bank:I Topic:Tax Incidence and Efficiency Loss
Type: Graph
112.
In the diagram, S is the before-tax supply curve and St is the supply curve after an excise tax is imposed. The efficiency loss of the tax is shown by areas
A +B + C + E + F.
A +B + C.
A +B + F.
D. E + F.
AACSB:Knowledge Application
Blooms: Understand Difficulty: 02 Medium
LearningObjective: 20-07 Explainthe principles relatingto tax shifting,tax incidence, and the efficiency losses caused by taxes.
Test Bank:I Topic:Tax Incidence and Efficiency Loss
Type: Graph
(Advanced analysis) The equations for the demand and supply curves for a particular product are P = 10 − 0.4Q and P = 2 + 0.4Q, where P is price and Q is quantity expressed in units of 100. After an excise tax is imposed on the product, the supply equationis P = 3 + 0.4Q. The excise tax on each unit of the product
A. is $1.
is $2.
is $3.
cannot be determinedwith the information given.
AACSB:Knowledge Application Accessibility: Keyboard Navigation
Blooms: Understand Difficulty: 02 Medium
LearningObjective: 20-07 Explainthe principles relatingto tax shifting,tax incidence, and the efficiency losses caused by taxes.
Test Bank:I Topic:Tax Incidence and Efficiency Loss
(Advanced analysis) The equations for the demand and supply curves for a particular product are P = 10 − 0.4Q and P = 2 + 0.4Q, where P is price and Q is quantity expressed in units of 100. After an excise tax is imposed on the product, the supplyequation is P = 3 + 0.4Q.The equilibrium quantity before the excise tax is imposed is
A. 800 units.
B. 1,000 units.
1,200 units.
1,400 units.
AACSB:Knowledge Application Accessibility: Keyboard Navigation
Blooms: Understand Difficulty: 02 Medium
LearningObjective: 20-07 Explainthe principles relatingto tax shifting,tax incidence, and the efficiency losses caused by taxes.
Test Bank:I Topic:Tax Incidence and Efficiency Loss
(Advanced analysis) The equations for the demand and supply curves for a particular product are P = 10 − 0.4Q and P = 2 + 0.4Q, where P is price and Q is quantity expressed in units of 100. After an excise tax is imposed on the product, the supply equationis P = 3 + 0.4Q. The equilibrium quantity after the excise tax is imposed is
750 units.
850 units.
C. 875 units.
D. 950 units.
AACSB:Knowledge Application Accessibility: Keyboard Navigation
Blooms: Understand Difficulty: 02 Medium
LearningObjective: 20-07 Explainthe principles relatingto tax shifting,tax incidence, and the efficiency losses caused by taxes.
Test Bank:I Topic:Tax Incidence and Efficiency Loss
(Advanced analysis) The equations for the demand and supply curves for a particular product are P = 10 − 0.4Q and P = 2 + 0.4Q, where P is price and Q is quantity expressed in units of 100. After an excise tax is imposed on the product, the supplyequation is P = 3 + 0.4Q. Government's revenue from this tax is
A. $750. B. $1,500. C. $875. D. $800.
AACSB:Knowledge Application Accessibility: Keyboard Navigation
Blooms: Understand Difficulty: 02 Medium
LearningObjective: 20-07 Explainthe principles relatingto tax shifting,tax incidence, and the efficiency losses caused by taxes.
Test Bank:I Topic:Tax Incidence and Efficiency Loss
(Advanced analysis) The equations for the demand and supply curves for a particular product are P = 10 − 0.4Q and P = 2 + 0.4Q, where P is price and Q is quantity expressed in units of 100. After an excise tax is imposed on the product, the supplyequation is P = 3 + 0.4Q. The efficiency loss of this tax is
A. $125.00.
B. $62.50.
C. $87.50.
D. $1.00.
AACSB:Knowledge Application Accessibility: Keyboard Navigation
Blooms: Understand Difficulty: 02 Medium
LearningObjective: 20-07 Explainthe principles relatingto tax shifting,tax incidence, and the efficiency losses caused by taxes.
Test Bank:I Topic:Tax Incidence and Efficiency Loss
Sales and excise taxes are levied on retailers, but retailers add these taxes to the prices of their products. This illustrates the
A. equal sacrifice theory of taxation.
B. shiftingof taxes to consumers.
ability-to-pay principle of taxation.
benefits-received principle of taxation.
AACSB:Knowledge Application Accessibility: Keyboard Navigation
Blooms: Understand Difficulty: 02 Medium
LearningObjective: 20-07 Explainthe principles relatingto tax shifting,tax incidence, and the efficiency losses caused by taxes.
Test Bank:I Topic:Tax Incidence and Efficiency Loss
The property tax may be regressive even though wealthy people own much more taxable propertythan do poor people. This possibility arises because
marginal and average tax rates on property tend to converge.
wealthy people can evade propertytaxes, while poor people cannot.
C. propertytaxes on rental property and business property are shifted.
D. statutoryproperty tax rates decline as the value of propertyrises.
AACSB:Knowledge Application Accessibility: Keyboard Navigation
Blooms: Understand Difficulty: 02 Medium
LearningObjective: 20-07 Explainthe principles relatingto tax shifting,tax incidence, and the efficiency losses caused by taxes.
Test Bank:I Topic:Tax Incidence and Efficiency Loss
Which of the followingtaxes is most likelyto be shifted?
A. a general sales tax
a flat-ratestate income tax
a progressive federal income tax
a propertytax on an owner-occupied residence
AACSB:Knowledge Application Accessibility: Keyboard Navigation
Blooms: Understand Difficulty: 02 Medium
LearningObjective: 20-07 Explainthe principles relatingto tax shifting,tax incidence, and the efficiency losses caused by taxes.
Test Bank:I Topic:Tax Incidence and Efficiency Loss
Which of the followingtaxes is least likely to be shifted?
A. a state excise tax on the sellersof football tickets
B. a personal income tax
a general sales tax on retailerswho sell foodstuffs and clothing
a federalexcise tax on the producersof whiskey
AACSB:Knowledge Application Accessibility: Keyboard Navigation
Blooms: Understand Difficulty: 02 Medium
LearningObjective: 20-07 Explainthe principles relatingto tax shifting,tax incidence, and the efficiency losses caused by taxes.
Test Bank:I Topic:Tax Incidence and Efficiency Loss
(Consider This) Which of the followingclaims is not made by defenders of lotteries?
Lotteries are a relativelypainless way to fund importantgovernment services.
Lotteries help reduce organized crime by providing an alternative to illegal gambling.
Lotteries are preferable to taxes because they are voluntary.
D. Lotteriesare progressive in nature, with higher income familiesplaying more frequently.
AACSB:Knowledge Application Accessibility: Keyboard Navigation
Blooms:Apply Difficulty: 03 Hard
LearningObjective: 20-01 Use a circularflow diagram to illustrate how the allocation of resourcesis affected by governments revenue and expenditure decisions.
LearningObjective: 20-04 List the main categories of state and local revenueand spending.
Test Bank:I Topic:Government and the CircularFlow Topic: State and Local Finance
(Consider This) Payout rates for state lotteries
A. are considerably lower than payout rates from casinos.
are considerably higher than payout rates from casinos.
are roughlyequal to the payout rates from casinos.
cannot be compared with casino payout rates because states do not typically disclosetheir payout rates.
AACSB:Knowledge Application Accessibility: Keyboard Navigation
Blooms:Apply Difficulty: 03 Hard
LearningObjective: 20-01 Use a circularflow diagram to illustrate how the allocation of resourcesis affected by governments revenue and expenditure decisions.
LearningObjective: 20-04 List the main categories of state and local revenueand spending.
Test Bank:I Topic:Government and the CircularFlow Topic: State and Local Finance
(Consider This) A value-added tax (VAT)
A. is anothername for a retail sales tax but is otherwise the same.
B. is like a sales tax but is only imposed on the differencebetween a firm's sales and its purchases from other firms.
is like an income tax but is only imposed on the differencebetween a person'sincome and his or her consumption.
only appliesto imported goods.
AACSB:Knowledge Application Accessibility: Keyboard Navigation
Blooms:Apply Difficulty: 03 Hard
LearningObjective: 20-01 Use a circularflow diagram to illustrate how the allocation of resourcesis affected by governments revenue and expenditure decisions. LearningObjective: 20-06 Summarize the differentphilosophies regarding the distribution of a nations tax burden.
Test Bank:I Topic:Apportioning the Tax Burden Topic:Government and the CircularFlow
(Consider This) Proponents of a value-added tax (VAT) claim that a VAT
is progressive, leading to a more equitabledistribution of income.
equalizes the tax burden between buyers and sellersof goods.
is proportional, so all income groups pay a fair share.
D. penalizesconsumption and encourages savings and investment.
AACSB:Knowledge Application Accessibility: Keyboard Navigation
Blooms: Understand Difficulty: 02 Medium
LearningObjective: 20-06 Summarize the differentphilosophies regarding the distribution of a nations tax burden. LearningObjective: 20-08 Discussthe probable incidenceof U.S. taxes and how the distribution of income betweenrich and poor is affectedby government taxes, transfers, and spending.
Test Bank:I Topic:Apportioning the Tax Burden Topic: Probable Incidence of U.S. Taxes
(Consider This) Which of the followingclaims is not made by opponents of a value-added tax (VAT)?
Savings and investment is discouraged because future consumption is penalized.
The VAT is regressive, potentially leading to additional progressive taxes to offset the regressive VAT.
C. Sellers bear a disproportionately large burden of the tax.
D. The VAT is a hidden tax, and thus easier to raise to support the expansion of government.
AACSB:Knowledge Application Accessibility: Keyboard Navigation
Blooms: Understand Difficulty: 02 Medium
LearningObjective: 20-06 Summarize the differentphilosophies regarding the distribution of a nations tax burden. LearningObjective: 20-08 Discussthe probable incidenceof U.S. taxes and how the distribution of income betweenrich and poor is affectedby government taxes, transfers, and spending.
Test Bank:I Topic:Apportioning the Tax Burden Topic: Probable Incidence of U.S. Taxes
(Last Word) In 2012, approximately what percentage of householdincome was transferred from the top two quintiles to the lowest three quintiles?
A. zero
B. 10
15
22
AACSB:Knowledge Application Accessibility: Keyboard Navigation
Blooms: Understand Difficulty: 02 Medium
LearningObjective: 20-06 Summarize the differentphilosophies regarding the distribution of a nations tax burden. LearningObjective: 20-08 Discussthe probable incidenceof U.S. taxes and how the distribution of income betweenrich and poor is affectedby government taxes, transfers, and spending.
Test Bank:I Topic:Apportioning the Tax Burden Topic: Probable Incidence of U.S. Taxes
(Last Word) For each dollar paid in taxes, approximately how much do householdsin the top quintile receive back in the form of government expenditures?
12 cents
41 cents
C. 29 cents
D. 71 cents
AACSB:Knowledge Application Accessibility: Keyboard Navigation
Blooms: Understand Difficulty: 02 Medium
LearningObjective: 20-06 Summarize the differentphilosophies regarding the distribution of a nations tax burden. LearningObjective: 20-08 Discussthe probable incidenceof U.S. taxes and how the distribution of income betweenrich and poor is affectedby government taxes, transfers, and spending.
Test Bank:I Topic:Apportioning the Tax Burden Topic: Probable Incidence of U.S. Taxes
(Last Word) Which of the following statements about taxes and government spending is correct?
Despite the overall progressive tax system, governmentexpenditures disproportionately favor the rich and result in a system that is slightly regressive.
The progressive tax system is almost perfectly offset by regressive expenditures, making the overall system proportional.
The regressive tax system is offset by expenditures directed toward lower-income households, making the overall system proportional.
D. The overall system of taxes and spendingis progressive, as over $1 trillion per year gets transferred from upper-income households to lower- and middle-income households.
AACSB:Knowledge Application Accessibility: Keyboard Navigation
Blooms: Understand Difficulty: 02 Medium
LearningObjective: 20-06 Summarize the differentphilosophies regarding the distribution of a nations tax burden. LearningObjective: 20-08 Discussthe probable incidenceof U.S. taxes and how the distribution of income betweenrich and poor is affectedby government taxes, transfers, and spending.
Test Bank:I Topic:Apportioning the Tax Burden Topic: Probable Incidence of U.S. Taxes
True / False Questions
"Tax Freedom Day" in the United States typicallyoccurs in mid-July.
FALSE
AACSB:Knowledge Application Accessibility: Keyboard Navigation
Blooms: Remember Difficulty: 01 Easy
LearningObjective: 20-03 List the main categories of federalrevenue and spendingand describe the difference betweenmarginal and average tax rates.
Test Bank:I Topic: FederalFinance
Government assumes some responsibility for providing a minimumstandard of living for all citizens to compensate for the increase in income inequality caused by government tax revenues and expenditures.
FALSE
AACSB:Knowledge Application Accessibility: Keyboard Navigation
Blooms: Remember Difficulty: 01 Easy
LearningObjective: 20-03 List the main categories of federalrevenue and spendingand describe the difference betweenmarginal and average tax rates.
Test Bank:I Topic: FederalFinance
The largest source of local government's revenue is the sales tax.
FALSE
AACSB:Knowledge Application Accessibility: Keyboard Navigation
Blooms: Remember Difficulty: 01 Easy
LearningObjective: 20-04 List the main categories of state and local revenueand spending.
Test Bank:I Topic: State and Local Finance
The basic source of state government's revenue is the propertytax.
FALSE
AACSB:Knowledge Application Accessibility: Keyboard Navigation
Blooms: Remember Difficulty: 01 Easy
LearningObjective: 20-04 List the main categories of state and local revenueand spending.
Test Bank:I Topic: State and Local Finance
The major expenditure of local governments is for education.
TRUE
AACSB:Knowledge Application Accessibility: Keyboard Navigation
Blooms: Remember Difficulty: 01 Easy
LearningObjective: 20-04 List the main categories of state and local revenueand spending.
Test Bank:I Topic: State and Local Finance
A tax is progressive if the averagetax rate rises as income increases.
TRUE
AACSB:Knowledge Application Accessibility: Keyboard Navigation
Blooms: Remember Difficulty: 01 Easy
LearningObjective: 20-03 List the main categories of federalrevenue and spendingand describe the difference betweenmarginal and average tax rates.
Test Bank:I Topic: FederalFinance
If you pay a $2,000 tax on $10,000 of taxableincome and a $4,000 tax on a taxable income of $16,000, the tax is progressive.
TRUE
AACSB:Knowledge Application Accessibility: Keyboard Navigation
Blooms: Remember Difficulty: 01 Easy
LearningObjective: 20-03 List the main categories of federalrevenue and spendingand describe the difference betweenmarginal and average tax rates.
Test Bank:I Topic: FederalFinance
The marginal tax rate is the tax rate that appliesto additional income.
TRUE
AACSB:Knowledge Application Accessibility: Keyboard Navigation
Blooms: Remember Difficulty: 01 Easy
LearningObjective: 20-03 List the main categories of federalrevenue and spendingand describe the difference betweenmarginal and average tax rates.
Test Bank:I Topic: FederalFinance
About two-thirds of all federal spending is for national defense.
FALSE
AACSB:Knowledge Application Accessibility: Keyboard Navigation
Blooms: Remember Difficulty: 01 Easy
LearningObjective: 20-03 List the main categories of federalrevenue and spendingand describe the difference betweenmarginal and average tax rates.
Test Bank:I Topic: FederalFinance
AACSB:Knowledge Application Accessibility: Keyboard Navigation
Blooms: Understand Difficulty: 02 Medium
LearningObjective: 20-08 Discussthe probable incidenceof U.S. taxes and how the distribution of income betweenrich and poor is affectedby government taxes, transfers, and spending.
AACSB: Knowledge Application Accessibility: Keyboard Navigation
Blooms: Understand Difficulty: 02Medium
Learning Objective: 09-02 Relate the law of diminishingreturns to a firms short-run production costs.
AACSB: Knowledge Application Accessibility: Keyboard Navigation
Blooms: Understand Difficulty: 02Medium
Learning Objective: 09-02 Relate the law of diminishingreturns to a firms short-run production costs. Learning Objective: 09-03 Describe the distinctions between fixedand variable costs and among total, average, and marginalcosts.
Test Bank: I Topic: Short-Run Production Costs
Topic: Short-RunProduction Relationships
128.
The Sunshine Corporation finds that its costs are $40 when it producesno output. Its total variablecosts (TVC) change with output as shown in the accompanying table. Use this information to answerthe following question.
Output
TVC
1
$30
2
50
3
65
4
85
5
110
The total cost of producing 3 units of output is
A. $65. B. $105. C. $145. D. $185.
AACSB: Knowledge Application
Blooms: Understand Difficulty: 02Medium
Learning Objective: 09-03 Describe the distinctions between fixedand variable costs and among total, average, and marginalcosts.
Test Bank: I Topic: Short-Run Production Costs
Type: Table
129.
The Sunshine Corporation finds that its costs are $40 when it producesno output. Its total variablecosts (TVC) change with output as shown in the accompanying table. Use this information to answer the following question.
Output
TVC
1
$30
2
50
3
65
4
85
5
110
The average total cost of 3 units of output is
A. $65.
B. $21.67. C. $40.
D. $35.
AACSB: Knowledge Application
Blooms: Understand Difficulty: 02Medium
Learning Objective: 09-03 Describe the distinctions between fixedand variable costs and among total, average, and marginalcosts.
Test Bank: I Topic: Short-Run Production Costs
Type: Table
130.
The Sunshine Corporation finds that its costs are $40 when it producesno output. Its total variablecosts (TVC) change with output as shown in the accompanying table. Use this information to answerthe following question.
Output
TVC
1
$30
2
50
3
65
4
85
5
110
The average fixed cost of 3 units of output is
A. $13.33.
B. $12.50. C. $40.
D. $18.50.
AACSB: Knowledge Application
Blooms: Understand Difficulty: 02Medium
Learning Objective: 09-03 Describe the distinctions between fixedand variable costs and among total, average, and marginalcosts.
Test Bank: I Topic: Short-Run Production Costs
Type: Table
131.
The Sunshine Corporation finds that its costs are $40 when it producesno output. Its total variablecosts (TVC) change with output as shown in the accompanying table. Use this information to answer the following question.
Output
TVC
1
$30
2
50
3
65
4
85
5
110
The marginal cost of the third unit of output is
A. $105. B. $25.
C. $15.
D. $20.
AACSB: Knowledge Application
Blooms: Understand Difficulty: 02Medium
Learning Objective: 09-03 Describe the distinctions between fixedand variable costs and among total, average, and marginalcosts.
Test Bank: I Topic: Short-Run Production Costs
Type: Table
132.
Refer to the diagram. This firm's average fixed costs
cannot be determined with the information in the diagram.
are the vertical distancebetween AVCandMC.
C. are the vertical distance betweenAVC and ATC.
D. equal the per-unit change in MC.
AACSB: Knowledge Application
Blooms: Understand Difficulty: 02Medium
Learning Objective: 09-03 Describe the distinctions between fixedand variable costs and among total, average, and marginalcosts.
Test Bank: I Topic: Short-Run Production Costs
Type: Graph