The figure above shows the market for cotton in Georgestan. The government regulates the market with a production quota set at 8 million pounds per year. The introduction of the quota has
A) not affected the level of cotton production in Georgestan.
B) increased the production of cotton in Georgestan by 8 million pounds.
C) decreased the production of cotton in Georgestan by 4 million pounds.
D) decreased the production of cotton in Georgestan by 8 million pounds.
D
You might also like to view...
Refer to Figure 13-4. Given the economy is at point A in year 1, what is the inflation rate between year 1 and year 2?
A) 0.9% B) 1.8% C) 2.7% D) 3.0%
Economists may hold many different views about the economy but on this they all agree: That price is always lower in a perfectly competitive market than in a monopoly market
Indicate whether the statement is true or false
Denise is thinking about setting up a butterfly garden in her backyard. She estimates that it will cost her $2,000 to purchase and install special plants and an irrigation system to attract butterflies. The benefit she expects to receive is $1,800 . In addition, neighbor Billy will receive a benefit of $150 and neighbor Sammy will receive a benefit of $100 . From this, we can conclude that
a. butterflies are a negative externality for Billy and Sammy b. Denise will set up the butterfly garden without any help from her free-rider neighbors c. if Sammy refuses to contribute to the butterfly garden, he will be unable to enjoy its benefits if it is built d. if Billy refuses to contribute to the butterfly garden, Denise will not have one e. if Billy and Sammy contribute the amounts at which they value the butterfly garden, Denise will set it up. Otherwise, no garden.
You study horse racing avidly and discover for this year's Kentucky Derby you think you have the field pretty well figured out. In fact, you calculate the expected return and it is the same as the expected return you are getting from the stock market. Is this investment in the race valuable to you?
What will be an ideal response?