The price of a good will fall if:
a. there is an excess demand of the good.
b. demand and supply of the good are the same.
c. there is an excess supply of the good.
d. the price is below the equilibrium price.
e. the price is near the equilibrium price.
c
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The production possibilities curve illustrates
A. The existence of unlimited wants and resources. B. The limitations that exist because of scarce resources. C. That there is no limit to the level of output. D. That there is no limit to what an economy can produce.
When a local casino spends millions in TV ads convincing town residents to reject another casino's bid to operate in the area, the most that the casino would be willing to spend is:
A. the producer surplus gained by being a monopoly. B. the consumer surplus gained by being a monopoly. C. deadweight loss. D. total economic surplus.
When a negative externality is present in a market, when a tax is imposed, it is:
A. inefficient, because the net benefit of buying another unit is zero for all market participants. B. efficient, because the government mandates the efficient quantity without regard for net benefits. C. inefficient, because the government mandates the efficient quantity without regard for net benefits. D. efficient, because the net benefit of buying another unit is zero for all market participants.
Sharing the results of applied research conducted under government sponsorship with the private sector, such as the development of the Global Positioning System (GPS), is an example of a government policy to promote economic growth by:
A. increasing the availability of natural resources. B. increasing physical capital. C. improving technology. D. increasing human capital.