Suppose that a vaccine is developed for a highly contagious strain of flu. The likelihood that anyone will get this flu decreases as more people receive the vaccine. One of the demand curves below represents the private demand for the vaccine and the other represents the social demand for the vaccine.
At the private market equilibrium, the price of each dose is:
A. $70.
B. $80.
C. $50.
D. $60.
Answer: C
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The profit maximizing rule P = MC applies to:
A. both perfectly competitive firms and imperfectly competitive firms. B. all firms. C. perfectly competitive firms only. D. monopolists only.
The aggregate demand curve:
A. shows the relationship between the overall price level and the level of total demand. B. shows the price level on the horizontal axis and output on the vertical axis. C. is upward-sloping, which is counter to the individual demand curve. D. shows the relationship between the price of goods and services and the level of total demand.
Explain why national income and domestic product must be equal
Since 1990 the highest economic growth rates in the world have occurred in
A. India. B. Nigeria. C. China. D. The United States.