Refer to Figure 3-8. The graph in this figure illustrates an initial competitive equilibrium in the market for apples at the intersection of D1 and S2 (point B). Which of the following changes would cause the equilibrium to change to point C?
A) a positive change in the technology used to produce apples and decrease in the price of oranges, a substitute for apples
B) an increase in the wages of apple workers and an increase in the price of oranges, a substitute for apples
C) an increase in the number of apple producers and a decrease in the number of apple trees as a result of disease
D) a decrease in the wages of apple workers and an increase in the price of oranges, a substitute for apples
A
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A good is considered to be a rival good if
A) you can keep those who did not pay for the good from enjoying its benefits. B) your consumption of the good reduces the quantity available for others to consume. C) you cannot keep those who did not pay for the good from enjoying its benefits. D) it is jointly owned by all members of a community.
Inward-oriented development strategies focus on exports of goods and services
a. True b. False Indicate whether the statement is true or false
Which of the following activities, if any, represents an external cost? a. The reduction in the incidence of chicken pox when children are inoculated against the disease. b. The damage to a person's health from secondhand smoke
c. The increase in local property values when the city creates a neighborhood park. d. The price you pay for the prime rib that you consume at a local restaurant.
From an economic standpoint, the amount of pollution should be
A. the amount that allows firms to maximize profits. B. zero. C. the amount where firms are earning a normal rate of return on investment. D. at the point at which the marginal benefit from further reduction equals the marginal cost of further reduction.