How the price of a depletable resource changes over time depends on
a. how the technology of resource extraction changes.
b. the interest rate.
c. how the technologies of production change in firms that use the resource.
d. All of the above are correct.
d
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What problem does the government have that makes price regulation less than an ideal solution?
a. There is no effective way to enforce price regulation. b. The government cannot tell what price a firm is charging. c. Regulators frequently will not have the information they need to set prices. d. Regulation often will lead to lower costs.
When economists make
a. positive statements, they are speaking not as policy advisers but as scientists. b. positive statements, they are speaking not as scientists but as forecasters. c. normative statements, they are speaking not as policy advisers but as scientists. d. normative statements, they are speaking not as policy advisers but as model-builders.
Which of the following is not true for social insurance?
a. It is usually supported by taxes, usually income tax or payroll tax. b. It serves the basis for most redistribution programs. c. It requires mandatory participation to be effective. d. It is the basis of the provision of medical care to the poor, elderly, and other vulnerable population groups in the U.S. e. It is usually experience-rated with premiums based on ability to pay.
Based on Figure 6.1, how much revenue will the government raise from a $0.25 per bushel tariff on soybean imports?
A) The government will raise $2.5 million. B) The government will raise $5 million. C) The government will raise $15 million. D) The government will raise $32.5 million. E) The government will see no increase in income; because the country is small, foreign firms will simply not serve it after the tariff is imposed.