Rhonda views movie tickets and DVD rentals to be substitute forms of entertainment. An increase in the price of a DVD rental will probably result in an increase in the:
a. supply of movie tickets
b. quantity of movie tickets demanded.
c. quantity of DVD rentals demanded.
d. demand for movie tickets.
d
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In a deposit-refund system,
a. the refund component rewards potential polluters for proper disposal or recycling activity b. the deposit should be set equal to the MSC of illegal waste disposal to achieve efficiency c. monitoring and enforcement costs are higher than if a pollution charge were used d. actual polluters are not penalized for actions that harm the environment
Use the figure below to answer the following question.
If actual production and consumption occur at Q1 and the price is P1
A. deadweight loss equals area b. B. producer surplus equals area c + b. C. consumer surplus equals area a + b. D. consumer surplus equals area a.
Refer to Figure 4-5. The figure above represents the market for pecans. Assume that this is a competitive market. If 8,000 pounds of pecans are sold
A) marginal benefit is equal to marginal cost. B) the deadweight loss is equal to economic surplus. C) producer surplus equals consumer surplus. D) the marginal benefit of each of the 8,000 pounds of pecans equals $9.
To help developing nations strengthen their international competitiveness, many industrial nations have granted tariff reductions to developing nations under the
A) international commodity agreements program. B) multilateral contract program. C) generalized system of preferences program. D) export led growth program. E) import substitution policy.