Government-imposed limits on price movements are likely to
A. increase economic efficiency.
B. decrease economic efficiency.
C. leave economic efficiency unchanged.
D. promote economic growth in the economy.
Answer: B
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A dominant strategy is one that
A) yields a position of the winner so long as the other participants act as planned. B) every participant in the game will follow. C) turns a negative-sum game into a positive-sum game. D) always yields the highest benefit regardless of what the other players do.
Explain how a specific tax equal to the marginal harm of pollution can increase or decrease total welfare in a monopoly market
What will be an ideal response?
Refer to the information provided in Table 8.1 below to answer the question(s) that follow.
Table 8.1 
Refer to Table 8.1. Assume the price of labor (L) is $5 per unit, the price of capital (K) is $10 per unit, and that firms attempt to minimize costs. The total variable cost of producing one unit of output is
A. $16. B. $100. C. $120. D. $220.
The demand for a productive resource is said to be "derived" because the demand for the factor:
A. Depends on the demand for the product it helps to produce B. Depends on the demand for a complementary factor C. Is derived from the state of the economy D. Is derived from government policy