Figure 6-1
illustrates the four possibilities of the distribution of costs and benefits among voters for a government project. For which types of projects would government action most likely work well, undertaking only efficient projects and rejecting inefficient ones?
a.
types A and B
b.
types B and D
c.
types B and C
d.
types A and D
d
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S & S Backhoe Service in Ozark, Arkansas rents backhoes and other heavy equipment to local construction companies. What determines the demand for backhoes in Arkansas?
A) The rental rate for backhoes B) The equilibrium quantity of backhoes C) The value of marginal product of backhoes D) The maximum number of backhoes available to rent
Which of the following is a market imperfection that might explain persistent wage differentials within an occupation?
A. Movement of labor from lower-wage to higher-wage jobs. B. Readily available information about job opportunities and pay. C. Principal-agent problems. D. Discrimination.
The intersection of the x axis and the y axis is called the
A. "zero" point. B. "meeting point." C. origin. D. corresponding point.
Jerry sells cherry sno-cones along the boardwalk in New Jersey. During the summer this is a perfectly competitive business, and Jerry faces a perfectly elastic demand curve. If he wants to try to increase revenues he should
A. raise the price of his sno-cones to make more per sale. B. lower the price of his sno-cones to try to sell more. C. do nothing; there is nothing he can do to increase revenue. D. keep the price the same but produce more to increase sales.