An increase in demand will induce entry by firms in the long run.
Answer the following statement true (T) or false (F)
True
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If penalties are imposed on both the buyers and the sellers of illegal goods or services, then an effect in the market for the illegal good or service would definitely be
A) an increase in the equilibrium price. B) a decrease in the equilibrium price. C) a decrease in the equilibrium quantity. D) an increase in the equilibrium quantity.
Describe the argument that education generates a positive externality. Why might this externality not be relevant in terms of economic efficiency?
What will be an ideal response?
Some economists argue that the official poverty figures overstate poverty in this country. Why?
What will be an ideal response?
The biggest percentage of corporate receipts in the United States is accounted for by which type of organization?
a. sole proprietorships b. small corporations c. large corporations d. small partnerships e. large partnerships