If the punishment associated with breaking a ban is not severe enough, it may:
A. not alter the trade-offs enough to change the consumption patterns of the banned good.
B. cause even more consumption of the good, exaggerating the problem.
C. still decrease the consumption of the good if the price of the good changes.
D. still be effective if it gains media attention.
A. not alter the trade-offs enough to change the consumption patterns of the banned good.
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Refer to Figure 5-9. The private profit-maximizing output level is
A) Q1. B) Q2. C) Q3. D) Q4.
Temporary discounts offered to customers by competitive retailers usually reflect:
a. output rationing. b. a rise in market demand. c. price discrimination. d. a fall in input prices.
Which of the following is an important advantage of discretionary monetary policy?
a. Influencing the political business cycle b. Flexibility to deal with changing economic conditions c. Limiting the opportunities for abuse of power by policymakers d. Avoiding the time inconsistency of policy problem
Among the two most important methods economists use to identify illegal discrimination are
A. laboratory experiments. B. "regression" techniques. C. lottery number analyses. D. random number simulations.