The demand for luxurious goods are usually unaffected by an increase in income
a. True
b. False
Indicate whether the statement is true or false
False
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Refer to the above figure. A budget deficit occurs when real national income is
A) Y3. B) Y1. C) Y2. D) None of the above: cannot be determined given the information.
In the above figure, if output were restricted to 300 million pounds of turkey, then
A) the marginal social benefit would exceed the marginal social cost on the last pound of turkey traded by $0.80. B) there would be a deadweight loss of $40 million. C) there would be inefficient underproduction of turkey. D) All of the above answers are correct.
From the social perspective, a major criticism of oligopolies is that
A) successful collusion leads to a monopoly-like outcome. B) price wars usually break out. C) advertising hardly ever occurs. D) cartels are unstable.
A rightward shift of a supply curve
a. represents a decrease in supply b. might be caused by an increase in demand c. might be caused by a price ceiling d. would cause an excess quantity supplied at the previous equilibrium price e. might be caused by a decrease in demand