In this graph, why is there a profit?
a. C is equal to the ATC at q*.
b. P* is equal to D at 0.
c. ATC is more than the MR at q*.
d. P* is more than C at q*.
d. P* is more than C at q*.
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During the years prior to the Great Depression (the 1920s), farmers were
(a) experiencing an increase in the value of farm output. (b) enjoying rising incomes and prosperity in spite of interest charges and taxes on real estate. (c) experiencing stagnant incomes. (d) experiencing declining incomes and hard times.
_____ is the exchange of political support on one issue for political support on another issue
a. Logrolling b. Market exchange c. Agenda control d. Rent seeking
A tax on gasoline often reduces road congestion because gasoline
a. and driving are complements. b. and driving are substitutes. c. is a normal good, while driving is an inferior good. d. is an inferior good, while driving is a normal good.
If the voluntary contributions experiment described at the end of the chapter is played multiple times, we would expect:
A. the voluntary contributions will be zero or close to zero. B. the voluntary contributions will exceed the amount required to provide the public good. C. the voluntary contributions will equal the amount required to provide the public good. D. the voluntary contributions will fall short of the amount required to provide the public good, but only by a small amount.