Refer to the above figure. The figure represents the consumption function for a consumer. Point C represents
A. autonomous consumption.
B. positive saving.
C. negative saving.
D. zero saving.
Answer: D
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Traffic congestion is an example of a negative externality because
A) motorists take into account all benefits while driving. B) motorists take into account all costs while driving. C) a motorist's cost of driving spills over and affects other motorists. D) a motorist's benefit from driving spills over and affects other motorists.
If firms in an industry differentiated their products and made economic profits in the short-run, what other characteristic would be important to determine if this is an oligopoly or a monopolistically competitive market?
A) the number of firms in the market B) the number of close substitutes for the good being produced C) the number of buyers in the market D) if the good being sold is a normal or inferior good
What is a Pigovian tax? What happens to deadweight loss when a Pigovian tax is implemented?
What will be an ideal response?
The only way that the family can consume more and enjoy a higher standard of living is to:
A. increase the amount each person produces. B. decrease the amount each person produces. C. increase how many people are in the family. D. increase both how many people are in the family, and the amount each one produces.