When external costs result from the production of a good,
A. Consumers have an incentive to consume too little.
B. Producers and consumers are not affected.
C. Both producers and consumers have an incentive to produce and consume too much.
D. Producers have an incentive to produce too little.
Answer: C
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For goods and services that are perfect substitutes, the consumer's indifference curves are ________ lines
A) straight, negatively sloped B) L-shaped C) negatively sloped, bowed-outward D) negatively sloped, bowed-inward
Suppose that the demand for medical services can be characterized by the equation P = 100 - Q. Suppose further that the supply of health services can be characterized by the equation P = Q + 50.
(a) What is the equilibrium quantity and price in the market for health services? (b) In an effort to make health services more affordable, the government restricts the price of health services to be no greater than $65. What will happen to the quantity of health services in the market?
Which of the following statements is not true?
a. Because the quantity of Bitcoins is capped at about 21 million in 2040 it is practically impossible for the currency to ever be a significant threat to large nations, like the United States and Japan, whose money supplies are measured in the trillions of dollars and yen. b. Bitcoins can be bought, traded, and earned by solving a time-consuming computer algorithm. c. Bitcoins are becoming more widely accepted by real-world merchants. d. None of the statements above is false. They are all true.
Daryn earns a higher salary than his friend Nick because Daryn is willing to work on the loading dock, whereas Nick prefers to work in an air-conditioned office. The difference in salary could illustrate a compensating differential
a. True b. False Indicate whether the statement is true or false