Refer to the information provided in Figure 4.3 below to answer the question(s) that follow.
Figure 4.3Refer to Figure 4.3. The government setting the price of pencils at $0.40 would be an example of an effective
A. price ceiling.
B. price surplus.
C. market equilibrium.
D. price floor.
Answer: A
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Which of the following is most likely to be a variable cost for an airline?
A. Insurance B. Property taxes C. Jet fuel D. The lease payment on the building where the airline’s headquarters are located.
An economy in which output has decreased and prices have increased would suggest that there has been a:
A. negative demand side shock. B. negative supply side shock. C. positive demand side shock. D. positive supply side shock.
Price discrimination occurs when
A. Sellers charge two separate prices for the same product to separate consumers. B. Minorities pay a higher price for a product than everyone else. C. Sellers charge one price to all consumers but not wholesalers. D. Sellers charge a higher price than is reasonable.
The costs that we avoid by not eliminating pollution while being able to enjoy the goods that create the pollution are the social benefits of pollution.
Answer the following statement true (T) or false (F)