This graph shows three different budget constraints: A, B, and C.
If Doug is on budget constraint C in the graph shown, what would cause it to shift to budget constraint B?
A. Doug's grocery store raises the price of milk by 10 percent.
B. Doug loses his job.
C. Doug finds soda at a warehouse outlet for a lower price.
D. Doug's grocery store has lowered all prices by 33 percent.
Answer: D
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Use the following diagram to answer the next question.
In the diagram, solid arrows reflect real flows and broken arrows are monetary flows. Flow (3) might represent
A. government salaries paid to school teachers. B. a state university's purchase of computers. C. property tax payments. D. social security payments to retirees.
Consider the perfectly competitive firm in the above figure. The profit maximizing level of output for the firm is equal to
A) 0 units. B) 14 units. C) 17 units. D) 19 units.
Private goods are goods
A) that carry a price. B) for which price is greater than zero. C) for which the more one person has the less is available for someone else. D) that are produced by the government.
The tragedy of the commons arises from the:
A. good being rival. B. good being excludable. C. combination of rivalry and nonexcludability. D. combination of rivalry and excludability.