Fixed costs are those costs that are
A. unchanging through time.
B. independent of the amount of output a firm produces in the short run.
C. zero if the firm produces no output in the short run.
D. dependent of the amount of output a firm produces in the short run.
Answer: B
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Which of the following statements is true?
A. National income is total income earned by households whereas personal income is total income received by households (including transfer payments). B. Disposable personal income equals personal income plus personal taxes. C. The expenditures approach yields a higher GDP value than the income approach. D. The expenditures approach yields a lower GDP value than the income approach.
A tax on cigarettes:
A. increases total surplus. B. increases efficiency in the market. C. will increase both total surplus and efficiency in the market. D. like any tax, will always reduce surplus and efficiency in markets.