Prohibiting the legal sale of a good because of the good's external costs
A. will never lead to fewer negative consequences of the good's sale and use.
B. will always lead to fewer negative consequences of the good's sale and use.
C. could lead to more negative consequences of the good's sale and use because of criminal activity.
D. is never the answer to a good with negative externalities.
Answer: C
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Which of the following statements is CORRECT?
A) When both demand and supply increase, the quantity decreases and the price might rise, fall, or remain the same. B) When both demand and supply increase, the price rises and the quantity might increase, decrease, or remain the same. C) When both demand and supply decrease, the quantity increases and the price might rise, fall, or remain the same. D) When both demand and supply decrease, the quantity decreases and the price might rise, fall, or remain the same.
The table above shows how the number of books Katie buys each year depends on her income
a) What kind of relationship exists between Katie's income and the number of books she purchases? b) Plot the relationship between Katie's income and the number of books she purchases in the above figure. Measure income along the vertical axis and the number of books along the horizontal axis. Be sure to label the axes. c) What is the slope of the relationship between $50,000 and $70,000 of income? d) What is the slope of the relationship between $90,000 and $110,000 of income? e) Comment on the similarity or dissimilarity of your answers to parts (c) and (d).
Which of the following did not occur during the early years of the Great Depression?
(a) Marriage rates fell. (b) Birth rates fell. (c) Divorce rates increased. (d) Actually, all of the above occurred.
The utility possibility frontier helps to predict the exact bargain two parties will arrive at
Indicate whether the statement is true or false