What are the key differences among public production, private subsidies, and vouchers?
What will be an ideal response?
Public production means that the government is the producer of the product. Private subsidies, however, are given to private producers of the product. Both public production and private subsidies affect the supply-side of the market. Vouchers, however, are given to households to help pay for the product. Vouchers therefore affect the demand-side of the market.
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Supply curves are positively-sloped because of
a. inefficient allocation of resources. b. the law of diminishing returns. c. economies of scale. d. self-interested suppliers seeking economic profit. e. all of the above.
What event led to the end of the Great Moderation?
A. The Great Depression B. The Great Crash C. Stagflation D. The Great Recession
About _____ percent of the money the government has been paying in farm subsidies has been going to large corporate farms.
Fill in the blank(s) with the appropriate word(s).
Refer to the information provided in Table 13.3 below to answer the question(s) that follow. Table 13.3Price ($)Quantity4.001003.502003.003002.504002.005001.506001.00700Refer to Table 13.3. If a monopoly faces the demand schedule given in the table and has a constant marginal and average cost of $1 per unit of providing the product, what is the level of output that would maximize its profits?
A. 200 B. 400 C. 500 D. 600