According to the Incentive Principle, people will be less likely to smoke if the government:
A. subsidizes hospitals treating lung disease.
B. increases taxes on smoking-cessation devices such as nicotine patches.
C. invests more money in cancer research.
D. increases taxes on cigarettes, effectively raising the price.
Answer: D
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Why is it necessary for a firm that practices price discrimination be a price maker rather than a price taker?
What will be an ideal response?
Which of the following is an example of a bilateral aid?
a. A U.S. commercial bank loan to a Mexican investor b. The establishment of a Brazilian subsidiary by a German firm c. U.S. humanitarian aid to Somalia d. A trade credit extended to Morocco for the purchase of Iranian oil e. A World Bank loan to Kenya
Answer the question based on the table below.PriceQuantityTFCTVC$55$25$10510252051525505202560At what point on the table would a purely competitive firm cover all of its costs and earn only normal profits?
A. Q = 5 B. Q = 10 C. Q = 20 D. Q = 15
Typically, the utility function is assumed to be
A. linear B. lexicographic C. concave D. non-time specific