Recall the four types of goods. Are national defense and a patented invention the same type of good? Briefly explain
No. National defense is not excludable; a patented invention is excludable.
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Which of the following relationships exists in first-degree price discrimination?
A. D=MR B. MR=ATC C. MC=ATC D. D=MC
Which action could the Fed use to decrease the money supply?
A) a tax increase B) a decrease in the discount rate C) an increase in the required reserve ratio D) an open market purchase
With respect to CO2 emissions, low-income countries
a. do not contribute to the problem b. can expect to have "dirtier" industries as they develop c. contribute more per dollar of output than high-income countries d. will have to sacrifice output in order to reduce emissions e. none of the above
The above figure shows the market for steel ingots. What is the change in consumer surplus if the market switches from competitive equilibrium to social optimum?
A) $625 B) $1250 C) $1875 D) $2500