A cartel is a group of firms that attempts to
A) maximize joint revenue.
B) maximize joint profit.
C) behave independently.
D) increase consumer surplus.
B
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Answer the following statement(s) true (T) or false (F)
1. Proponents of an environmentally adjusted measure of national income believe that environmental pollution linked to production should be recorded as a loss in the system of national accounts (SNA). 2. Improvements made to China’s environment in preparation for the Olympic Games in 2008 have been maintained and even enhanced over time. 3. The economic criteria concerned with minimizing resource use to achieve an objective is known as allocative efficiency. 4. Setting an air quality standard is an example of a command and control approach to improving the environment. 5. A tax imposed on emissions is an example of the market approach to pollution control.
When policy makers are deciding where to place the statutory incidence of a tax, it is helpful to remember that:
A. it will have no effect on the economic incidence of the tax. B. the economic incidence will fall to the more-elastic party. C. it will largely determine the economic incidence of the tax. D. it will have a large impact on efficiency of the tax.
Refer to the following figure. When price is $10 and quantity demanded is 2,000, what is the point elasticity of demand?
A. -1/3 B. -3 C. -5 D. -2/3 E. -1
The increase in the price of a good that is used as an input for a second good would (for the second good)
A. cause a movement along the supply curve to a (higher price, higher quantity) point. B. move its supply curve to the right. C. move its supply curve to the left. D. cause a movement along the supply curve to a (lower price, lower quantity) point.