The more complicated a task, the greater the ability to economize on ________ through specialization and centralized control
a. transaction costs
b. marginal cost
c. sunk cost
d. fixed cost
a
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To make child daycare more affordable, government advisors are debating two possible options. Plan A is to give daycare centers a $100 subsidy per month per child. Plan B is to give the parents $100 reduction in taxes per month per child in daycare. Which plan benefits parents more?
a. Plan A because it will increase the supply of childcare and decrease the price. b. Plan B because the $100 goes directly to the parents. c. The plans are equivalent in terms of their impact on the price minus subsidy paid by parents. d. Plan A because the price will fall, while under Plan B the price will rise.
Which of the following would be classified as a public good?
A) state lotteries B) telephone service C) cable TV programming D) national defense
The quantity of goods exchanged in a market will be below the equilibrium quantity
a. when the price is either held above or below the equilibrium price. b. only when the price is held above the equilibrium price. c. only when the price is held below the equilibrium price. d. only when the price is rising.
The total quantity of output producers are willing and able to supply at alternative price levels in a given time period is
A. Aggregate supply. B. Market supply. C. Market demand. D. Aggregate demand.