As a monopoly increases production, the price of all units sold falls, but marginal revenue increases
a. True
b. False
Indicate whether the statement is true or false
False
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If the government makes a good illegal and then imposes stiffer penalties on illegal drug buyers than on sellers, the price of the good ________ and the quantity ________
A) falls; increases B) rises; decreases C) falls; decreases D) does not change; decreases
Economic choices or tradeoffs are the result of: a. human greed
b. scarcity. c. poverty. d. private ownership of resources.
You paid $35 for a ticket (which is non-refundable) to see SPAM, a local rock band, in concert on Saturday. Assume that $35 is the most you would have been willing to pay for a ticket. Your boss called, and she is looking for someone to cover a shift on Saturday at the same time as the concert. You would have to work 4 hours and she would pay you $11/hr. The psychic cost to you of working is $2/hr. Should you go to the concert instead of working Saturday?
A. Yes, the benefit of going to the concert is more than the cost. B. No, because there are no benefits of going to the concert. C. No, the benefit of going to the concert is less than the cost. D. Yes, the benefit of going to the concert is equal to the cost.
Economists generally agree that in reducing poverty, policies should be sought that do the
A. greatest good for total production. B. least harm to work incentives. C. most good for the poor. D. least harm to equality of income.