Which of the following is a disadvantage of government provision of a public good?
a. The government lacks information about what people are willing to pay for the good.
b. The government does not provide enough of any public good.
c. The private sector can provide all public goods at a lower cost.
d. None of the above is a disadvantage.
a
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From an economic perspective, price discrimination is desirable because
A) the increase in profits is more than offset by the loss in consumer surplus, resulting in a net increase in economic surplus. B) it redistributes wealth from wealthy consumers to highly innovative firms. C) it enables firms to increase profits with no loss in economic surplus, and in turn, this could provide firms with incentives to engage in beneficial product innovation. D) the increase in profits results in higher corporate tax revenues received by the government which could be used to subsidize consumption for low-income individuals.
Menu costs suggest that sticky prices are ____ for firms but _____ for the economy as a whole
a. optimal; suboptimal b. bad; good c. natural; unnatural d. suboptimal; optimal. e. suboptimal; suboptimal
Inputs that can be increased or decreased in the short run are called
a. fixed inputs b. variable inputs c. economic inputs d. accounting inputs e. normal inputs
The figure below shows the supply and demand curves for jeans in Smallville.
At the price of $60 per pair, sellers offer ________ pairs of jeans per day, and buyers wish to purchase ________ pairs of jeans a day.
A. 24; 8 B. 8; 24 C. 16; 16 D. 60; 20