A company that formerly produced music CDs went out of business because too many potential customers bought illegally-produced copies of the CDs instead of buying the product directly from the company. This instance serves as an example of
a. market power.
b. inefficient trade.
c. inadequate enforcement of property rights.
d. the invisible hand at work.
c
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Refer to Table 2-13. What is Tammi's opportunity cost of bathing a cat?
A) two groomed dogs B) one and a half groomed dogs C) two-thirds of a groomed dog D) half a groomed dog
Which of the following statements is false?
A. Under an emission tax, a tax is set and then the quantity of permissible pollution is determined. B. Under both emission taxes and tradable pollution permits polluters must pay to pollute. C. One possible approach to dealing with the problem of environmental negative externalities is a policy of tradable pollution permits, also known as cap and trade. D. Under a tradable pollution permits system, a price of pollution is set and then the quantity of permissible pollution is determined based upon that price.
The slope of the budget constraint is all of the following except
a. the relative price of two goods. b. the rate at which a consumer can afford to trade one good for another. c. the marginal rate of substitution. d. constant.
Which of the following is correct?
A. Nominal GDP growth = real GDP growth ? inflation B. Nominal GDP growth + inflation = real GDP growth C. Nominal GDP growth + real GDP growth = inflation D. Nominal GDP growth = inflation + real GDP growth