Prices set too low can actually be against the public interest
a. True
b. False
Indicate whether the statement is true or false
True
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Refer to Figure 2-4. A movement from ________ is the result of additional government restrictions on the pollution that results from plastic production
A) Z to W B) X to V C) X to W D) Z to Y
When taxes or subsidies on a particular product are introduced into the general equilibrium model we can be sure that
A. subsidies make the product appear too cheap to its producer. B. we get too much of the subsidized product and too little of the taxed product. C. a more fair allocation of resources is possible. D. taxes make the taxed product appear too expensive to its producer.
Which of the following is true if equilibrium exceeds full employment?
A. Growth rates are unacceptably low. B. The economy is experiencing low inflation. C. The economy is inside the production possibilities curve. D. The economy is working beyond normal capacity.
A barter arrangement basically means
A. a credit deal. B. a cashless transaction. C. buying with an I.O.U. D. exchanging goods for cash.