Attempts are being made to develop a biodegradable plastic using agricultural produce such as potatoes. If these attempts are successful, what will happen to the equilibrium price and quantity of potatoes?
a. Price will increase and quantity decrease.
b. Price will increase and quantity increase.
c. Price will decrease and quantity increase.
d. Price will decrease and quantity decrease.
e. No change in equilibrium price and quantity will occur.
B
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When a negative externality exists, the private cost of production ________ the social cost of production
A) is greater than B) is less than C) eliminates D) is equal to
Refer to Figure 4-9. The price buyers pay after the tax is
A) $12. B) $8. C) $5. D) $3.
____ is used in repeated games such that one player follows the other player's move in the previous round, leading to ____ cooperation
a. Bandwagon effect; greater b. Bandwagon effect; lesser c. Tit-for-tat strategy; greater d. Tit-for-tat strategy; lesser
What impact did the soaring oil prices of 2007 and the first half of 2008 have on the economy?
a. They increased SRAS, causing real output and employment to increase. b. They reduced SRAS, causing real output and employment to increase. c. They increased SRAS, causing real output and employment to decline. d. They reduced SRAS, causing real output and employment to decline.