Economists suggest that a market can fail if
A. consumers have to pay more than they want to.
B. governments dictate prices.
C. producers get smaller profits than they desire.
D. production or consumption can harm an innocent third party.
Answer: D
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The conditions for successful price discrimination include
a. some ability for the firm to set the price. b. strong barriers segmenting markets. c. an inability for any customer to resell the product. d. All of the above.
Which of the following observations is false?
a. Both CPI and GDP deflator tend to move in the same direction. b. GDP deflator tends to be much more volatile than CPI c. Both CPI and GDP deflator probably overstate the inflation rate. d. both a. and c. are false.
Exhibit 17-1: Global Comparison of Government Surpluses and Deficits as a Percentage of GDP, 2016 ? Country Surplus (+) or Deficit (-) as a percent of GDP Canada -1.10 Iceland 12.57 Latvia 0.06 Norway 3.99 Spain -4.51 United States -4.94? Given the information in Exhibit 17-1, which of the following statements is correct?
A. Canada was the closest of the countries shown to balancing its budget. B. Norway likely had to sell government securities to finance its overspending. C. Iceland experienced the largest deficit of the countries shown. D. The national debts of Canada, Spain and United States increased in 2016.
What is the opportunity cost of going from point D to point C?
