If polluters are forced to pay for their pollution, they will reduce pollution toward a socially optimal amount
a. True
b. False
Indicate whether the statement is true or false
True
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When the price of a product is increased 15%, the quantity demanded decreases 10%. We can therefore conclude that the demand for this product is
A. cross-elastic. B. unitary elastic. C. inelastic. D. elastic.
The argument that raising the employment tax leads to more employment is most likely to hold if the
A) labor supply curve has the same slope as labor demand. B) labor supply curve has a steep slope. C) labor demand curve is vertical. D) labor supply curve has a relatively flat slope.
In its effort to maximize economic profit, a firm characterized as a price setter must determine:
A) only the price it should charge. B) only the quantity it should produce. C) both the price it should charge and the quantity it should produce. D) neither the price it should charge and the quantity it should produce as these are both determined by forces beyond the firm's control.
Adam's Apples, a small firm supplying apples in a perfectly competitive market, decides to cut its production in half this year. As a result, the
a. market price will rise b. market price will fall c. market quantity will rise d. market price will not be affected e. total expenditures on apples will rise