At a price of $299.95, the manufacturer of a portable gas-powered generator is willing to produce 19,000 units per quarter. At a price of $349.95, it is likely that the manufacturer will be willing to produce
a. less than 19,000 units per quarter.
b. It is impossible to predict the effect of a higher price on the number of units of a product that a firm will be willing to produce.
c. more than 19,000 units per quarter.
d. 19,000 units per quarter.
Answer: c. more than 19,000 units per quarter.
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To answer the question, refer to the following table showing a demand schedule: 
If price falls from $200 to $150,
A. an arrow representing the price effect points down and is longer than an arrow for the quantity effect. B. an arrow representing the quantity effect points up and is shorter than an arrow for the price effect. C. arrows representing the price and quantity effects both point down. D. total revenue moves in the same direction as the arrow representing the quantity effect. E. arrows representing the price and quantity effects both point up.
The market produces too few public goods because:
A.) The link between payment and consumption is broken. B.) They must be paid for by wealthy individuals. C.) Only the government can produce public goods. D.) The market distributes goods to those with the most money.
Where there are spillover (or external) benefits from having a particular product in a society, the government can make the quantity of the product approach the socially optimal level by doing the following except
A. subsidizing the buyers of the product. B. subsidizing the sellers of the product. C. taxing the sellers of the product. D. providing the product itself.
The figure above shows the marginal revenue and long-run cost curves for a perfectly competitive firm. Which of the following statements is TRUE?
A) The firm is producing at minimum long-run average cost. B) Over time, this firm will leave this industry. C) The firm is earning positive economic profit. D) The firm will eventually decrease its production.