These are the cost and revenue curves associated with a firm.
If the firm in the graph were producing Q2 and charging P2, it:
A. represents the perfectly competitive outcome.
B. is an outcome that eliminates deadweight loss.
C. is an efficient outcome.
D. All of these statements are true.
Answer: D
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Variability in exchange rates of currencies used in international trade
A. causes a complete breakdown of trade. B. renders the theory of gains from trade null in practice. C. brings with it a host of complications in trade policy. D. has no impact on trade.
If a life can be saved for $250 using Method A and $260 using Method B,
a. it would be efficient to shift resources from A to B b. it would be efficient to shift resources from B to A c. both methods should be pursued to the maximum extent possible d. neither method should be used if methods with higher dollar values are available e. both methods are on the economy's production possibilities frontier
Assume the Environmental Protection Agency imposes an excise tax on polluting firms. In which of the following situations would we expect the additional costs to be borne most heavily by consumers?
A. Demand is highly elastic and supply is highly inelastic. B. Demand and supply are both highly elastic. C. Demand and supply are both highly inelastic. D. Demand is highly inelastic and supply is highly elastic.
When a financial asset is first sold, the sale takes place in the ________ market, and subsequent sales take place in the ________ market
A) stock; bond B) primary; secondary C) investment; commercial D) secure; risk