World-class models receive significant economic rents because
A. there is a shortage of world-class models.
B. there is a surplus of world-class models.
C. their talents and abilities are in fixed supply.
D. there is no equilibrium quantity of world-class models.
Answer: C
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A) It increases by $1000. B) It decreases by $1000. C) It decreases by less than $1000. D) It stays the same.
In order for an individual to receive a black belt in karate, they must pass a series of tests designed by a third party. An announcement listing those individuals who received their black belt in karate is an example of ________.
A) a trademark B) screening C) moral hazard D) a certification
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a. social cost; private cost b. private cost; social cost c. social cost; social benefit d. private cost; social benefit e. social cost; external cost
Which of the following is a likely result of a subsidy?
a. An increase in the revenue received by a government b. An increase in the subsidized economic activity c. An increase in equilibrium market price d. An increase in net social welfare