The central problem of economics is the
A) Distribution of goods and services to those in need.
B) Human wants exceeding the availability of resources.
C) Inefficiency of government operations.
D) Labor unemployment.
Answer: B) Human wants exceeding the availability of resources.
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Which of the following is likely to happen if the government decides to impose a tariff?
A) Domestic consumers will be better off. B) The revenue earned by the government will decrease. C) Domestic producers will face higher foreign competition. D) The domestic industry will earn higher profits.
Which of the following factors will help determine how the costs of social regulation are split between consumers and producers?
a. The price elasticities of demand and supply b. The quantity produced by the firm c. The average total costs of the firm before regulation d. The number of consumers in the market e. The number of producers in the market
Suppose that a firm operating in perfectly competitive market sells 300 units of output at a price of $3 each. Which of the following statements is correct? (i) Marginal revenue equals $3. (ii) Average revenue equals $3. (iii) Total revenue equals $900
a. (i) only b. (iii) only c. (i) and (ii) only d. (i), (ii), and (iii)
The demand curve illustrates the fact that consumers tend to purchase:
A. more of a good as their incomes rise. B. more of a good as its price falls. C. name-brand products more frequently than generic products. D. more of a good as it becomes more popular.