A drought destroys much of the grape crop. As a result, consumer surplus in the market for wine:
a. decreases. b. increases.
c. remains unchanged. d. depends on the deadweight loss.
a
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Which of the following methods could be used to correct for external costs?
A) Impose a tax or an effluent fee on the offenders. B) Have the offender clean up the pollution it caused. C) Require firms in the industry to install pollution control devices. D) All of the above would be appropriate.
If a customer had to pay a $5 entry charge to get into a roller coaster theme park, and then pay $2 per ride, she would get less consumer surplus than if she was able to pay $2 per ride with no entry charge
a. True b. False Indicate whether the statement is true or false
The base year in the consumer price index (CPI) is:
a. given a value of zero. b. always the first year in the current decade. c. established by law. d. a year chosen as a reference for prices in all other years.
As the dollar exchange rate, e, increases, the quantity of dollars supplied in the foreign exchange market ________, and the quantity of dollars demanded in the foreign exchange market ________.
A. increases; increases B. decreases; increases C. increases; decreases D. decreases; decreases