A situation in which output decreases while prices increase is often referred to as:
A. inflation.
B. negative economic growth.
C. a recession.
D. stagflation.
Answer: D
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In the multiple-polluter case, each firm faced with an emission charge imposed as a marginal tax (MT) abates as long as
a. its MAC
If substitutes for a good are readily available, the demand for that good
A) does not change substantially if the price rises. B) does not change substantially if the price falls. C) is inelastic. D) is elastic. E) Both answers A and B are correct.
A car dealer advertises free satellite radio for one year with the purchase of a new car. This is an example of:
A. bait and switch. B. marginal sales. C. an incentive. D. voluntary exchange.
Suppose the cafeteria at a university puts healthy foods such as fruit and yogurt in an easily accessible location but places junk foods somewhere slightly less prominent. This would be an example of a(n):
A. nudge. B. push. C. irrational behavior. D. incentive compatibility problem.