Figure 3-18
Refer to . When the price falls from P1 to P2, which area represents the increase in consumer surplus to existing buyers?
a.
ABD
b.
ACF
c.
BCED
d.
DEF
c
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A popular shoe company has a 'buy one, get one half price' offer in which customers who purchase one pair of shoes can purchase a second pair at half price. This is an example of ________ and is ________.
A) price discrimination; only illegal if the practice substantially lessens competition or tends to create a monopoly B) conditional sales; only illegal if the practice substantially lessens competition or tends to create a monopoly C) price discrimination; always illegal per se D) conditional sales; always illegal per se
Compromise between the desire to facilitate international trade and the need to give domestic governments latitude to govern their economies is called
a. economic structuralism. b. embedded liberalism. c. reciprocity. d. voluntary export restraint.
Which of the following is an example of an external benefit?
A. A company opens a slaughterhouse at the end of your street. B. Firms are able to reduce their costs of production by using a more efficient technology. C. The city spends $500,000 to upgrade the local jail. D. More people start to install solar panels on their roofs, and as a result, electricity use goes down as does the pollution created by the generation of electricity.
New growth theory argues that
A. growth relies on maintaining lower growth rates of population, especially in less developed countries. B. technology cannot be looked at as an outside factor without an explanation of what drives it. C. growth is due to the proper government policies concerning interest rates. D. technology is the key factor that explains growth but technology is beyond economic explanation itself.