Refer to the provided supply and demand graph of Product X. What would happen if the government taxed the producers of this product because it has negative externalities in production?
What will be an ideal response?
supply would decrease
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In exchange for a share of the revenues earned on campus, State U has granted CheapFizz the exclusive right to sell soft drinks in the student union and in vending machines on campus. Prior to the deal, three soft drink companies sold beverages on campus; now no other soft drink company is allowed to sell its products on campus. The beneficiaries of this deal is/are ________.
A. the students at State U B. State U and CheapFizz C. CheapFizz D. State U
Hotelling's model has been used to describe differentiation in the political "market." Suppose that 100 voters are evenly distributed between the extreme left and the extreme right on the political spectrum, and that all voters vote, and they always vote for the candidate closest to them on this spectrum. The numbers on this spectrum represent the number of voters lying to the left of the number. So, at the midpoint, fifty voters lie to the left and fifty to the right.
If Candidate Y is running against Candidate Z:
A. Both candidates will have an incentive to move toward each other's position. B. Candidate Y will have an incentive to move to the left, and Candidate Z will have an incentive to move to the right. C. Both candidates will have an incentive to move to the left. D. Neither candidate has any incentive to move.
If we consider the equation PAE = A + bY the independent part of the equation that depends on income is:
A. b B. Y C. A D. PAE
If too many high risk policyholders migrate to a comprehensive health insurance plan which covers a wide range of treatments, the price of a policy must increase
Indicate whether the statement is true or false