Figure 4-13
Refer to . The exhibit illustrates the impact of granting a subsidy on a particular good. Which of the following is true for this subsidy given the information provided in the exhibit?
a.
The subsidy has been statutorily (legally) paid to sellers.
b.
The subsidy results in a decrease in the market selling price of the good.
c.
Sellers will receive a larger proportion of the benefit from this subsidy than buyers.
d.
The subsidy results in a reduction in the quantity purchased.
c
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The seller of a call option has the
A) right to buy shares at a specified price. B) obligation to buy shares at a specified price if the option is exercised. C) right to sell shares at a specified price. D) obligation to sell shares at a specified price if the option is exercised.
The theory that profits are a reward for innovation was formulated by ____________.
Fill in the blank(s) with the appropriate word(s).
The total revenue received by sellers of a good is the same amount as the:
A. Total income earned by the buyers B. Total amount spent on the good by the buyers C. Price paid by the buyers for each unit of the good D. Profits earned by the sellers of the good
Suppose two countries, A and B, are at war with each other. Country A is very wealthy; country B is very poor. The XYZ Co produces tanks
Is XYZ able to set a different price for the tank sold to country A than the price for the tank sold to country B? Explain.