What happens when a command-and-control regulation has been satisfied?
a. Polluters get a pollution charge tax break.
b. Polluters have access to new marketable permits.
c. Polluters have no incentive to do better.
d. Polluters have many incentives to do better.
c. Polluters have no incentive to do better.
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________ increases the quantity of capital, and ________ decreases the quantity of capital
A) Depreciation; net investment B) Investment; saving C) Gross investment; net investment D) Net investment; gross investment E) Investment; depreciation
Exhibit 7-13 Price and cost per unit curves
?
In Exhibit 7-13, if the price is P3, total economic profit is maximized or economic loss minimized at the output:
A. Q1. B. Q2. C. Q3. D. Q4.
Refer to the graph above and assume that the areas of the boxes are the same. Consider a situation where price decreases from P2 to P1. In this price range, demand is relatively:
A. inelastic because the gain in total revenue (area J) is less than the loss in total revenue (areas C + F + H). B. inelastic because the loss in total revenue (areas D + G + I + J) is greater than the gain in total revenue (areas C + F + H). C. elastic because the loss in total revenue (areas C + F + H) is greater than the gain in total revenue (area J). D. elastic because the loss in total revenue (area J) is less than the gain in total revenue (areas C + F + H).
Explain how product liability laws can reduce adverse selection
What will be an ideal response?