A technological advancement has just occurred in the computer chip industry. In the computer chip market this will lead to
A) an increase in price and a decrease in quantity.
B) an increase in price and an increase in quantity.
C) a decrease in price and a decrease in quantity.
D) a decrease in price and an increase in quantity.
D
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The government of Lithasia has decided to set a minimum price for certain agricultural products in order to safeguard the interests of farmers. This is an example of a ________
A) price floor B) price ceiling C) Pigouvian tax D) Pigouvian subsidy
Vertical-equity is most closely associated with which of the following goals or principles?
A) the horizontal-equity principle B) the goal of attaining social objectives C) the goal of economic efficiency D) the ability-to-pay principle
If a policy is Pareto optimal:
A. it will hurt no one. B. some of the losses will exceed the gains. C. it will hurt more than 50 percent of the population. D. it will hurt less than 50 percent of the population.
Adam Smith stressed specialization and division of labor as causes of economic growth.
Answer the following statement true (T) or false (F)