In relation to prices that would prevail in an uncontrolled market, prices charged by a black market are usually
a. lower, since it is hard for the sellers to locate buyers.
b. lower, since it is hard for the buyers to locate sellers.
c. higher, since black marketers expect compensation for the risk of being caught.
d. higher, since most people enjoy goods more if they are illegal.
c
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A higher expected price tomorrow will tend to
A) shift today's demand curve to the left. B) shift today's demand curve to the right. C) have no effect on today's demand curve. D) have no effect on tomorrow's demand curve.
Bonds that are rated in the D category are of higher quality than bonds that are rated in the A category
Indicate whether the statement is true or false
Figure 6-1
illustrates the four possibilities of the distribution of costs and benefits among voters for a government project. Programs that give subsidies to a small group of producers at general taxpayer expense would be considered
a.
type A projects, and the government would be likely to undertake these projects if they were efficient and to reject them if they were inefficient.
b.
type B projects, and the government would be likely to undertake many of these projects even when they were counterproductive (inefficient).
c.
type C projects, and the government would be likely to fail to undertake many of these projects even when they were productive (efficient).
d.
type D projects, and the government would be likely to undertake these projects if they were efficient and to reject them if they were inefficient.
Cindy discovers that when she goes to the beach, she does not have to bring her radio. She can put her blanket near someone who has a radio and listen all day (without having to carry her radio, get sand in her speakers, or buy new batteries). This is an example of:
A. private property abuse. B. external costs. C. a negative externality. D. a positive externality.