When residents surrounding an airport complain about noise from aircraft landings and takeoffs, the relevant economic analysis is that of
a. externalities.
b. equality-efficiency trade-off.
c. comparative advantage.
d. the cost decrease of the service sector.
e. the cost disease of personal services.
a
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Refer to the scenario above. Which among the following is a possible outcome if the number of bidders decreases to 45?
A) There will be no change in the outcome of the auction. B) The optimal bid for Molly will now be $831.11. C) The optimal bid for Molly will now be $745. D) The optimal bid for Molly will now be $845.
If the marginal cost of a perfectly competitive firm producing a good is $50 and the market price of the good is $100, the firm should:
A) decrease its output. B) increase its output. C) try to increase the market price. D) try to decrease the market price.
Assuming that rational expectations theory does not hold, if a central banks attempts to reduce the inflation rate what happens to the unemployment rate in the short-run?
In general, a plot of land goes to
A. whomever the government designates. B. the highest bidder. C. the person who can make the best use of it.