Refer to Figure 3-13. Suppose Peru decides to increase its production of emeralds by 2. What is the opportunity cost of this decision?
a. 30 rubies
b. 40 rubies
c. 60 rubies
d. 120 rubies
Ans: c. 60 rubies
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In graphical form,the effect of imposing a tax on a good is shown as
A) a leftward shift of the market supply curve. B) a rightward shift of the market supply curve. C) a downward movement along the market supply curve. D) no change to the market supply curve.
Zach and Laura want to buy cars and go to the same dealer. The dealer perceives Zach's price elasticity of demand to be lower than Laura's. Which of the following statements will be true?
a. The dealer will quote the same price to both since individual characteristics do not matter. b. The dealer will quote a higher price to Laura because of her gender. c. The dealer will quote a higher price to Zach because his demand is less elastic. d. The dealer will quote different prices to both according to their bargaining tactics.
A production possibilities curve depicts
a. combinations of resources the economy has the capacity to produce b. prices that can be charged for capital and consumption goods c. combinations of prices and outputs that can be produced d. combinations of goods the economy has the capacity to produce e. combinations of resources and prices that the economy can produce
Vertical equity is the belief that people ______.
a. should be taxed equally regardless of income b. should be taxed based on how much they have already paid during their lifetime c. with different levels of income should be taxed differently d. should be taxed only if they derive benefits from a specific government service