Entry into a market by new firms will increase the
a. supply of the good.
b. profits of existing firms.
c. price of the good.
d. marginal cost of producing the good.
a
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A Pigovian tax is intended to:
A. counter the effect of a negative externality. B. decrease efficiency in a market. C. decrease total surplus in a market. D. All of these statements are true.
Nonmarket transactions are omitted from GDP because ______.
a. they are covered by other economic measurements. b. people who do them are often illegal aliens c. they fail to make enough of an impact on the economy d. reliable information is lacking for them
In an open economy, how many bikes will this country export?
A. 20,000 B. 60,000 C. 80,000 D. 50,000
An NBA player released their latest shoe, which all the fans want. However, there are only so many shoes produced. How does this affect the market for these shoes?
A. An increase in demand and a surplus at the original price. B. An increase in demand and a shortage at the original price. C. A decrease in demand and a shortage at the original price. D. A decrease in demand and a surplus at the original price.