The above figure shows the marginal social benefit and marginal social cost curves of coffee in the nation of Kaffenia. Which of the following would result in the quantity of coffee in Kaffenia differing from the efficient quantity?
A) The existence of a single producer and seller of coffee.
B) The existence of many producers and sellers of coffee.
C) Damage to the environment from fumes emitted by coffee beans.
D) Both answers A and C are correct.
D
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Firms pay famous individuals to endorse their products because
A) famous people only consume high-quality products. B) apparently demand is affected not just by the number of people who use a product but also by the type of person that uses the product. C) famous people obviously know what are the best goods and services. D) the firms are irrational and are wasting advertising expenditures.
According to the graph shown, the amount of consumer surplus domestic consumers enjoy once a tariff has been imposed is:
This graph demonstrates the domestic demand and supply for a good, as well as a tariff and the world price for that good.
A. A
B. ABC
C. ABCDEFG
D. ABCDEFGHIJKL
One way the government can encourage economic growth is to:
A. protect property rights. B. enforce contracts. C. ensure legal agreements will be upheld. D. All of these actions will encourage economic growth.
A recession can be expected to reduce inflation in the economy if the recession is caused by a(n)
a. increase in aggregate demand. b. increase in aggregate supply. c. decrease in aggregate demand. d. decrease in aggregate supply.