Refer to Figure 9-1. Under autarky, the producer surplus is
A) $40. B) $105. C) $195. D) $285.
B
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A good is characterized by network economies if it:
A. is widely advertised on television. B. becomes more valuable as more people own it. C. can be used by more than one person at a time. D. becomes cheaper to produce as more people buy it.
Some universities now offer "tuition bonds." Parents can purchase a bond at the time their child is born. The bond is redeemable in 18 years for an amount of money equal to the cost of the university's tuition at that time
Which of the following would reduce the market price of these bonds? A) An increase in the rate of interest B) A decrease in the rate of interest C) The passage of legislation limiting increases in college tuition to the rate of inflation D) both A and C E) both B and C
Why do some workers lose their job when the minimum wage is increased?
A) The increase in labor costs decreases the supply of the product, thereby raising the price of the good so that the equilibrium quantity decreases to zero. B) The increase in the minimum wage decreases the quantity of labor demanded. C) The demand for labor is perfectly inelastic. D) The supply of labor decreases. E) The demand for labor is perfectly elastic.
Whenever there are negative or positive externalities, the Coase theorem suggests that it is economically efficient for the government to intervene to resolve the externality problem.
Answer the following statement true (T) or false (F)