Answer the following statement(s) true (T) or false (F)
1. If the demand curve for a good is relatively flat, a small change in price results in a relatively large change in quantity demanded
2. If safer cars reduce a driver's chance of dying in an accident, then there will be fewer driver fatalities.
3. If one wants to apply the theoretical side of economics by examining data, they use a family of statistical techniques called econometrics.
4. A sales tax causes the demand curve to shift upwards by the amount of the tax.
5. As defined by economists, the supply of corn refers to the number of bushels of corn that farmers bring to the market.
1. True
2. False
3. True
4. False
5. False
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A firm in a monopolistically competitive market determines the profit-maximizing output at which
A) MR = P. B) MR = ATC. C) MR = AVC. D) MR = MC.
An import quota
a. is preferable to a tariff since an import quota does not create a deadweight loss. b. is a tax on imported goods. c. reduces the welfare of domestic consumers. d. reduces the welfare of domestic producers.
Figure 17-8
Refer to . If this country allows free trade in wagons,
a.
consumers will gain more than producers will lose.
b.
producers will gain more than consumers will lose.
c.
producers and consumers will both gain equally.
d.
producers and consumers will both lose equally.
Suppose that at the current price, consumers would like to purchase 10 million large-screen televisions and 15 million are available. When the market coordinates the demand and supply for large-screen televisions, the price of large-screen televisions will:
A. stay the same. B. rise. C. be fixed by the government. D. fall.