Suppose a policy change generates $90,000 of benefits for low-income families and $150,000 of costs for high-income families. We can best describe the change as
A. Pareto efficient.
B. potentially efficient.
C. inefficient.
D. equitable.
Answer: C
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Which of the following is not a characteristic of a perfectly competitive market?
a. There is a large number of small firms. b. Firms sell a homogeneous product. c. Firms can easily enter or exit the market. d. Firms are price makers, not price takers.
Which of the following would be expected if the tariff on foreign-produced automobiles was increased? a. The domestic price of automobiles would fall
b. The supply of foreign automobiles to the domestic market would be reduced, causing auto prices to rise. c. The number of unemployed workers in the domestic automobile industry would rise. d. The demand for foreign-produced automobiles would increase, causing the price of automobiles to increase in other nations.
If the demand for coffee makers increases,
a. the quantity demanded will decrease. b. equilibrium price will increase and equilibrium quantity will decrease. c. equilibrium price will decrease and equilibrium quantity will increase. d. quantity supplied will increase. e. quantity supplied will decrease.
A market is said to be in equilibrium when
A. The buying intentions of all consumers are realized. B. The supply intentions of all sellers are realized. C. The quantity demanded equals the quantity supplied. D. Demand is fully satisfied at all alternative prices.