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A production function is a relationship between inputs and   1.  quantity of output.   2.  revenue.   3.  costs.   4.  profit.

Some costs do not vary with the quantity of output produced. Those costs are called   1.  marginal costs.   2.  average costs.   3.  fixed costs.   4.  explicit costs.

Which of the following would be considered a private good?   a public beach fish in the ocean a swimming suit a ferry boat ride to an island with open seating

A good is excludable if   the government can regulate its availability it is not a normal good people can be prevented from using it one person’s use of the good diminishes another person’s enjoyment of it

The quantity demanded of a good is the amount that buyers are willing to purchase willing and able to purchase willing, able, and need to purchase able to purchase

Tradable pollution permits   allow for companies that cannot reduce pollution easily to purchase  them from other companies that can are likely to create a higher level of total pollution are less desirable than corrective taxes in reducing pollution have prices that are set by the government  

The unique point at which the supply and demand curves intersect is called equinox equivalence equitable equilibrium

Which of these would be the best example of a proportional tax?   1. income tax 2. wages and earnings tax 3. sales tax 4. value added tax

Graph 2 (Isomorphic) – This question is worth 14 points.

Income Tax rate $0 to $40,000 25% $40,000 to $100,000 40% Over $100,000 60%   What is the effective tax rate if you earned $200,000? 47% 52% 58%    60%