Economists favor the use of peak-load pricing since it can
A. improve the equity of the distribution of income.
B. enhance the efficiency in the use of scarce resources.
C. improve the profit levels of corporations.
D. result in lower levels of pollution.
Answer: B
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The number of US households with access to the Internet is growing rapidly. Compared to 50 years ago, one would predict that when considering a major purchase, people today will gather:
A. more information because the Internet has lowered the cost of gathering information. B. less information because the Internet has lowered the cost of gathering information. C. more information because the Internet has increased the cost of gathering information. D. less information because the Internet has increased the benefit of gathering information.
The more difficult the goal, the more likely military force is going to be needed to back up economic sanctions
Indicate whether the statement is true or false
Suppose that government imposes a specific excise tax on product X of $2 per unit and that the price elasticity of demand for X is unitary (coefficient = 1). If the incidence of the tax is such that the producers of X pay $1.75 of the tax and the
consumers pay $.25, we can conclude that the: A. supply of X is highly inelastic. B. supply of X is highly elastic. C. demand for X is highly inelastic. D. demand for X is highly elastic.
Free trade allows the people of a country to produce outside their production possibility frontier.
Answer the following statement true (T) or false (F)