Refer to Figure 2-6. If the economy is currently producing at point D, what is the opportunity cost of moving to point B?
A) 60 thousand spoons B) 0 forks
C) 16 thousand spoons D) 46 thousand forks
B
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Suppose the world price of widgets is $5 each. If a widget-importing country imposed a $2 per widget tariff, what price would that country's consumers pay for widgets?
A) $10 B) $7 C) $5 D) $3 E) A price that is greater than $5 and less than $7
For network externalities to occur
A) the government has to create new laws. B) deadweight loss must be minimized. C) there must be a critical mass of users. D) there must be a positive benefit to society.
Strikebreakers
A) can reduce the bargaining power of a union. B) can strengthen the bargaining power of a union. C) make a union negotiation invalid. D) make a strike permanent.
A pollution compensation tax is chosen to
a. keep output stable while reducing pollution b. increase output in a cleaner manner c. make all users pay the same amount of tax d. drive the polluting firms out of business in the long run e. create enough government revenue to clean up the environment