Explain why a production quota is inefficient
What will be an ideal response?
A production quota is inefficient because it decreases production. As a result the marginal social benefit of the last unit produced exceeds the marginal cost. Because the marginal benefit exceeds the marginal social cost, there is a deadweight loss.
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The greater the consumer's reluctance to shift brands, the lower the price elasticity of demand
a. True b. False Indicate whether the statement is true or false
Which of the following industries is an illustration of homogeneous oligopoly?
A. Household laundry products. B. Personal computers. C. Aluminum. D. The auto industry.
When poverty is defined by an absolute real income level, what will happen to the poverty rate if income per capita in a country continues to grow?
A) The poverty rate will increase forever. B) The poverty rate will eventually be zero. C) The poverty rate will increase and then decrease. D) The poverty rate will never change.
Refer to the information provided in Figure 4.1 below to answer the question(s) that follow.
Figure 4.1Refer to Figure 4.1. The United States will import 6 million apples per day if a per-apple tax of ________ is levied on imported apples.
A. 0 cents B. 10 cents C. 20 cents D. 30 cents