Troughs occur
A. two or three times a year.
B. two or three times in every business cycle.
C. at the bottom of business cycles.
D. about once every 25 years.
C. at the bottom of business cycles.
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Because the United States has ________ advantage compared to China in producing airplanes, China can buy airplanes from the United States at a ________ opportunity cost than that at which China can produce them
A) comparative; lower B) comparative; higher C) absolute; lower D) absolute; higher E) None of the above because China will produce airplanes and sell them to the United States.
A perfectly competitive firm has a random marginal cost with a 20 percent chance of a high marginal cost of $20 and an 80 percent chance of a low marginal cost of $5. What is the firm's expected marginal cost?
A) $7 B) $8 C) $10 D) $12
The economic burden of an excise tax
a. can usually be partially shifted from buyers onto sellers. b. equals the revenue from the tax. c. is less than the burden of an income tax that would raise the same revenue. d. is shared equally by buyers and sellers.
Suppose that a vaccine is developed for a highly contagious strain of flu. The likelihood that anyone will get this flu decreases as more people receive the vaccine. One of the demand curves below represents the private demand for the vaccine and the other represents the social demand for the vaccine.
The government could increase total economic surplus by:
A. subsidizing production of the vaccine. B. providing 250 doses of the vaccine for free. C. taxing production of the vaccine. D. encouraging people to pay each other to get the vaccine.