Compared to the situation in which a good is legal, making the good illegal and imposing ________ results in less being sold
A) a much higher fine on sellers than on buyers
B) a much higher fine on buyers than on sellers
C) any fine on either the buyer or the seller
D) all of the above
D
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Refer to Figure 7-1. Suppose the government allows imports of leather footwear into the United States. What will the market price be?
A) > $24 B) $24 C) $30 D) $54
If the country represented in this graph now can produce a maximum of 12 units of guns if it shifts all resources to gun production and could produce a maximum of 9 units of butter if it used all its resources for butter production then it would have experienced __________________.
Sellers who lower their prices and consequently sell a larger quantity earn more
A) gross (or total) revenue as a result. B) gross revenue only if the demand is elastic. C) net and gross revenue if the demand is inelastic. D) net revenue (revenue minus cost) as a result.
Jane's Garage Cleaning is a perfectly competitive firm that currently cleans 40 garages a week. Jane's marginal cost is less than the price she charges. Jane can increase her profit if she
A) charges a higher price. B) charges a lower price. C) cleans fewer than 40 garages a week. D) cleans more than 40 garages a week.