Refer to Figure 11.4. Which diagram illustrates the effect of a decrease in the income tax rate?

Exhibit 13-3 A monopolist In Exhibit 13-3, if this industry is regulated and the regulatory commission wants price to be set equal to marginal cost, the proper price and output combination to be set is:

A. price = $8; output = 30. B. price = $5; output = 40. C. price = $4; output = 25. D. price = $3; output = 50.

Each of the following is a requirement of a gold standard except

A. a nation defines its currency in terms of gold. B. a nation's money supply is made up of gold or gold certificates. C. a nation must maintain a fixed ratio between its gold stock and its money supply. D. there must be no barriers to the free flow of gold into and out of the country.