Refer to the information provided in Figure 3.11 below to answer the following question(s).
Figure 3.11Refer to Figure 3.11. A decrease in the price of mushrooms (an input for gardenburgers) will cause a movement from Point B on supply curve S2 to
A. supply curve S1.
B. supply curve S3.
C. Point C on supply curve S2.
D. Point A on supply curve S2.
Answer: B
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Public goods are not normally characterized by the following:
a. externalities b. market provision c. the free rider problem d. non-exclusion e. all the above characterize public goods
This graph demonstrates the domestic demand and supply for a good, as well as a quota and the world price for that good.
According to the graph shown, if the government restricts free trade, area G represents:
A. government tax revenues, which go to the domestic government. B. quota rents, which go to foreign firms or governments. C. quota rents, which go to domestic producers. D. government tax revenues, which go to the foreign government.
Expansionary monetary policy:
A. lowers interest rates, increasing investment and decreasing net exports. B. raises interest rates, raising both investment and net exports. C. lowers interest rates, increasing both investment and net exports. D. raises interest rates, decreasing both investment and net exports.
Fill in the blanks. Which of the following has been found by researchers in surveys of consumers? Most people consider it _________ for firms to raise their prices following an increase in costs ____________ to raise prices following an increase in demand.
a. fair; and fair b. fair; but unfair c. unfair; but fair d. unfair; and unfair