A year-long drought that destroys most of the summer's crops would be considered a:
A. short-run supply shock.
B. long-run demand shock.
C. long-run supply shock.
D. short-run demand shock.
Answer: A
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Command-and-control policies usually:
A. reduce the production of a polluting good more than do pollution taxes. B. reduce the production of a polluting good less than do pollution taxes. C. increase price less than do pollution taxes. D. decrease the quantity demanded by less than do pollution taxes.
A decrease in long-run average costs resulting from increases in output is
A) attributed to economies of scale. B) attributed to diseconomies to scale. C) attributed to constant returns to scale. D) attributed to the law of diminishing marginal product.
If Happy Babies sells its baby formula in the United States for $10 box and for $12 (dollar equivalent) a box Canada, this is an example of ________.
A) second-degree price discrimination B) third-degree price discrimination C) peak-load pricing D) two-part pricing
The monopolist's total revenue curve is represented graphically by a positively sloped line.
Answer the following statement true (T) or false (F)