An optimal decision is one that is selected based on an analysis of
A. explicit costs but not implicit costs.
B. implicit costs but not explicit costs.
C. both explicit costs and implicit costs.
D. neither explicit costs nor implicit costs.
Answer: C
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What happens when a command-and-control regulation has been satisfied?
a. Polluters get a pollution charge tax break. b. Polluters have access to new marketable permits. c. Polluters have no incentive to do better. d. Polluters have many incentives to do better.
Which of the following will cause the demand curve for product A to shift to the left?
A. Population growth that causes an expansion in the number of persons consuming A. B. An increase in money income if A is a normal good. C. A decrease in the price of complementary product C. D. An increase in money income if A is an inferior good.
In Walnut Creek, California, there are three very popular supermarkets: Safeway, Whole Foods, and Lunardi's. While Safeway remains open twenty-four hours a day, Whole Foods and Lunardi's close at 9 pm. Which of the following statements is true?
A) Safeway is a monopoly all day because it produces a service that has no close substitutes. B) Safeway has a monopoly at midnight but not during the day. C) Safeway can ignore the pricing decisions of the other two supermarkets. D) Safeway probably has a higher markup to compensate for its higher cost of production.
Another term for the real-balance effect is
A) the substitution effect. B) the wealth effect. C) the indirect effect. D) the interest rate effect.