Question #13 to #25

24. What is marginal product, and what does it mean if it is diminishing? /2 25. Define total cost, average total cost, and marginal cost. How are they related? /3 d. same as accounting profit Which of the following is an example of implicit costs? 26. Your aunt is thinking about opening a hardware store. She estimates that it would cost 13 a payments made to labour only $500,000 per year to rent the location and buy the stock. In addition, she would have to quit her Oh. payments made by the firm to others $50. 000 per year job as an accountant. /3 c opportunity cost of resources owned by the firm d. same as accounting profit a. What is your aunt's opportunity cost of running a hardware store for a year? If your aunt thought she could sell $510 000 worth of merchandise in a year, should she open the store? 14 Which statement applies when marginal cost equals average total cost? a. Marginal cost is greater than average total cost. Explain source (b. Marginal cost is less than average total cost. c.Average total cost is at its maximum. d. Average total cost is at its minimum. 15 What would be subtracted from a firm's revenue to measure economic profit? answer a variable costs objective Ob. fixed costs Oc explicit costs d opportunity costs 16, What are the two most important sources of tax revenue for the federal government? What are the two most important sources of tax revenue for provincial and territorial governments? /3 17. What is meant by the efficiency of a tax system? What can make a tax system inefficient? /3 18. Explain the benefits principle and the ability-to-pay principle. . What are vertical equity and system? 12 horizontal equity? . Why is studying tax incidence important for determining the equity of a tax 19. Why do some economists advocate taxing consumption rather than income? /1 20. Give two arguments why wealthy taxpayers should pay more taxes than poor taxpayers. /1 21. Government spending in Canada has grown as a share of national income over time. What continue? 12 changes in our economy and our society might explain this trend? Do you expect the trend to 22. In a published source or on the Internet, find out whether the Canadian federal government few years? /2 had a budget deficit or surplus last year. What do policymakers expect to happen over the next 23. Farmer McDonald gives banjo lessons for $20 an hour. One day, he spends 10 hours planting $100 worth of seeds on his farm. What opportunity cost has he incurred? What cost would his puntant measure? If these seeds will yield $200 worth of crops, does McDonald earn an accounting profit? Does he earn an economic profit? /3 English