In the supply and demand model, a subsidy granted to sellers is illustrated by
a. a downward shift in the demand curve, by the per unit amount of the subsidy.
b. an upward shift in the demand curve, by the per unit amount of the subsidy.
c. a downward shift in the supply curve, by the per unit amount of the subsidy.
d. an upward shift in the supply curve, by the per unit amount of the subsidy.
C
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If the real rate of return is 2 percent, and the inflation rate is 0 percent, then the nominal interest rate must be:
A. 2 percent. B. 0 percent. C. 4 percent. D. ?2 percent.
Suppose fishermen go fishing at a fishery that has no property rights (meaning any fishermen could fish as she liked). The marginal cost of a fishing boat is constant at $100, and the price for each pound of fish sells at $1. Further, assume the relation between the number of vessels and the total catch is given by the following table: Each boat that goes out get an equal share of all the fish caught and there are 8 boats possible. 
If the fishery was own collectively by all the fishermen, how many boats would be sent out fishing?
A. 8 B. 0 C. 7 D. 6
If companies that were creating pollution had to pay the social cost of production, they would want to supply:
A. the same amount at any given price. B. the same amount at the equilibrium price. C. less at any given price. D. more at any given price.
The median voter theorem is more likely to hold true in elections with a large number of candidates
Indicate whether the statement is true or false