When a market is in disequilibrium consumers and producers change their behavior. As a result the market reaches equilibrium
Indicate whether the statement is true or false
True . For example, when a shortage exists at a given price consumers bid up the price and firms increase production until the equilibrium is reached.
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When first-degree price discrimination is perfectly implemented
a. social gain is maximized, with all gains going to the monopoly. b. consumers' surplus and producer's surplus are both larger than in the case of simple monopoly. c. the resulting deadweight loss is larger than if the monopoly did not price discriminate. d. the consumers' and producer's gains from trade are identical to those in a competitive market.
If tuition at a college is $30,000 and the external benefit of graduating from this college is $10,000, then
i. in the absence of any government intervention, the number of students graduating is less than the efficient number. ii. the government could increase the number of graduates by giving the college a $10,000 subsidy per student. iii. the government could increase the number of graduates by giving the students $10,000 vouchers. A) i only B) i and ii C) i and iii D) ii and iii E) i, ii, and iii
Because resources are scarce relative to wants, the study of economics concerns
A) how money is important to people. B) how individuals, businesses, and governments make choices. C) how money is used to buy what people want. D) None of the above are correct.
Other things equal, an appreciation of the U.S. dollar would:
A. Increase productivity and increase aggregate supply B. Decrease net exports and decrease aggregate demand C. Increase the prices of imported resources and decrease aggregate supply D. Decrease the supply of money and decrease aggregate demand