Which statement describes an opportunity cost that could result from the government regulating businesses?
A) Less recalls occur as a result of government regulations.
B) Government regulations can lead to an increase in product safety.
C) Government regulations can lead to an increase in production costs.
D) Consumer protection declines as a result of government regulations.
Answer: C) Government regulations can lead to an increase in production costs.
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A market with three firms in competition with each other has a equilibrium price of $5 and equilibrium quantity of 10,000. If the three firms form a cartel, the cartel, set price will be ________ than $5 and the set quantity will be ________ than 10,000.
A) greater; less B) less; greater C) greater; greater D) less; less
Suppose a survey is taken concerning car safety. According to the survey, people strongly desire safer cars and indicate they are willing to pay substantially more for safer cars
Using this information, one auto firm adds numerous safety features to its car, raising the price by several thousand dollars. Sales drop sharply, and the firm loses profits. What went wrong?
If the marginal propensity to consume is 4/5, the multiplier is: a. 20
b. 5. c. 1. d. 1/5.
In order to conclude that markets are efficient, we assume that they are perfectly competitive
a. True b. False Indicate whether the statement is true or false