The price at which the quantity demanded is zero is called the
a. Choke price
b. Reserve price
c. Exponential price
d. Extraction price
e. User price
Ans: a. Choke price
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Which of the following statements identifies a correct reason for demographic transition?
A) The increase in migration of labor from urban to rural areas reduces fertility. B) Transition from a rural economy to an urban economy reduces income below subsistence that reduces fertility and the size of families. C) The cost of rearing children is comparatively lower for urban families in comparison to rural families. D) The dependence on child labor is negligible in urban families in comparison to rural families.
The optimal decision rule is less than unanimity
a. True b. False
Which of the four types of economic decision makers is most important?
a. firms, because they produce all goods and services in the economy b. households, because they demand goods and services and supply resources c. government, because it ultimately sets and enforces the "rules of the game" d. government, because it steps in when there is market failure e. the rest of the world, because there are over 150 countries
An externality is defined as
A. an opportunity cost that is not considered, which causes inefficiency. B. a social cost that affects parties external to a transaction. C. a transaction that imposes a loss on one of the parties involved. D. a “cost of doing business” that cannot be allocated to any particular good. E. the increase in cost associated with increased production.