If smokers knew the information cigarette firms conceal about the negative externalities associated with cigarette smoking
a. the supply curve would shift to the right causing price to rise
b. the supply curve would shift to the left causing price to fall
c. the supply curve would shift to the left causing price to rise
d. the demand curve would shift to the left causing price to fall
e. the demand curve would shift to the right causing price to fall
D
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A tariff is a tax
A) on an exported good. B) on an imported good. C) imposed on all traded goods. D) imposed on people's income. E) imposed on the difference between the value of the goods a firm imports and the value of the goods it exports.
A buyer is willing to buy 10 units of a good at a maximum price of $10 per unit. The reservation value of the buyer in this case is:
A) $1. B) $10. C) $20. D) $100.
Consider the following statements:
a. Soda drinkers purchase more soda from a grocery store that sells soda at a lower price than other rival grocery stores in the area. b. Homeowners do not take steps to increase security even though they believe it is more costly to allow burglaries than to install security monitoring equipment. c. Manufacturers produce less of a particular cell phone when its selling price rises. Which of the above statements demonstrates that economic agents respond to incentives? A) a only. B) b only. C) c only. D) a and b. E) a, b, and c.
Why might a young, healthy person choose not to buy health insurance?
What will be an ideal response?