The particular price that results in quantity supplied being equal to quantity demanded is the best price because it
a. maximizes costs of the seller.
b. maximizes tax revenue for the government.
c. maximizes the combined welfare of buyers and sellers.
d. minimizes the expenditure of buyers.
c
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When U.S. house prices began to fall in 2007:
A. most people negotiated lower mortgage rates, so few were forced to sell their houses. B. banks made it difficult for homeowners to negotiate higher mortgage rates, which led to a decrease in the supply of houses. C. many Americans were forced to sell their homes because they could no longer take out loans against the rising value of their houses. D. the demand for affordable housing increased, leading house prices to stabilize.
Assume that you have heard news that a local radio station is hosting a luncheon at your school by offering hot dogs, chips and cola at no expense to the student body. Why would economists say that this lunch is not truly free?
What will be an ideal response?
When the government increases taxes to provide traditional public goods, such as national security, there tends to be
a. widespread benefits and costs b. widespread costs and concentrated benefits c. concentrated benefits and costs d. widespread benefits and concentrated costs e. widespread costs and either widespread or concentrated benefits
Relative to the U.K., Japan, Germany, and France, life expectancy in the U.S. is
A. higher by more than ten years. B. higher by one to five years. C. lower by one to five years. D. lower by more than ten years.