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You deposit $2,000 in a savings account, and a year later you have $2,100. Meanwhile, the consumer price index rises from 200 to 204. In this case, the nominal interest rate is ( ) percent, and the real interest rate is ( ) percent.

A. 1, 5
B. 3, 5
C. 5, 1
D. 5, 3

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A firm is producing 20 units with an average total cost of $25 and marginal cost of $19. If it were to increase production to 21 units, which of the following must occur? ( )

A. Marginal cost would decrease.
B. Marginal cost would increase.
C. Average total cost would decrease.
D. Average total cost would increase.

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The Laffer curve illustrates that, in some circumstances, the government can reduce a tax on a good and increase the ( )

A. deadweight loss.
B. government’s tax revenue.
C. equilibrium quantity.
D. price paid by consumers.

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Jane pays Chuck $50 to mow her lawn every week. When the government levies a mowing tax of $10 on Chuck, he raises his price to $60. Jane continues to hire him at the higher price. What is the change in producer surplus, change in consumer surplus, and deadweight loss? ( )

A. $0, 0, 10
B. $0, −10, 0
C. +$10, −10, 10
D. +$10, −10, 0

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A $1 per unit tax levied on consumers of a good is equivalent to ( )

A. a $1 per unit tax levied on producers of the good.
B. a $1 per unit subsidy paid to producers of the good.
C. a price floor that raises the good’s price by $1 per unit.
D. a price ceiling that raises the good’s price by $1 per unit.

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You deposit $2,000 in a savings account, and a year later you have $2,100. Meanwhile, the consumer price index rises from 200 to 204. In this case, the nominal interest rate is ( ) percent, and the real interest rate is ( ) percent.

A. 1, 5 B. 3, 5 C. 5, 1 D. 5, 3

A firm is producing 20 units with an average total cost of $25 and marginal cost of $19. If it were to increase production to 21 units, which of the following must occur? ( )

The Laffer curve illustrates that, in some circumstances, the government can reduce a tax on a good and increase the ( )

Jane pays Chuck $50 to mow her lawn every week. When the government levies a mowing tax of $10 on Chuck, he raises his price to $60. Jane continues to hire him at the higher price. What is the change in producer surplus, change in consumer surplus, and deadweight loss? ( )

A $1 per unit tax levied on consumers of a good is equivalent to ( )

A. 1, 5
B. 3, 5
C. 5, 1
D. 5, 3