Which panel of Figure 3.3 represents the changes in the market for cigarettes when the government increases subsidies for the production of tobacco and at the same time bans smoking in public buildings?

A. A.
B. B.
C. C.
D. D.


Answer: B

Economics

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Leisure being an inferior good is necessary but not sufficient for labor supply to slope up.

Answer the following statement true (T) or false (F)

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Stefano has just completed an original oil painting. After considering the costs for brushes, paint, canvas, and the value of Stefano's labor time, the marginal cost of the painting is $1,000. Lucky Stefano. One art lover paid him $1,500

How much producer surplus did Stefano obtain? A) The amount of producer surplus cannot be determined from the information given. B) $1,500 C) $1,000 D) $500

Economics

A monopolistic competitor incurs an average total cost of $20 while producing the profit-maximizing output of 900 units. If the profit earned by the monopolist $1,800, the price per unit of output is _____

a. $18 b. $22 c. $25 d. $20

Economics

Over the past two decades, the U.S. has persistently exported more goods and services than it has imported

a. True b. False Indicate whether the statement is true or false

Economics