For the perfectly competitive broccoli producers in California, the market demand curve for broccoli is
A) a horizontal line.
B) downward sloping.
C) nonexistent.
D) upward sloping.
E) the same as the demand curve each firm faces.
B
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Pollution is an example of a
A) negative externality B) positive externality. C) private cost. D) public good.
When regulators identify with the special interests of the industry they regulate, this behavior conforms with the
A) share-the-gains, share-the-pains hypothesis. B) rate-of-return hypothesis. C) lemon market hypothesis. D) capture hypothesis.
Economists usually do not favor subsidies on specific products or in-kind payments to help low income people. This is because
A. the poor person could have increased utility if the same money used to subsidize a product would be given to them to use as they choose. B. economists are individualists who believe that helping the needy makes them dependent. C. in-kind payments suggest that the poor person does not have an indifference curve pattern from which to make choices. D. a subsidy means that the recipient does not face a budget line anymore and therefore cannot maximize his welfare efficiently.
Which would not cause the supply curve to shift?
A) a change in technology B) a change in factor costs C) a change in the price of the good D) a change in the prices of related goods