The people of Andres, a small fishing village in a country, are facing extremely difficult times as their source of livelihood is threatened. Unregulated by the government, the coastline was subject to overfishing for a long time, adversely affecting the stock of fish. The variety of fish has declined and it takes much longer to haul in a decent catch these days. People in Andres are worried that
they may have to migrate to other areas or look for alternative sources to earn a living. Which of the following is most similar to this scenario?
a. Oil producers hoard the extracted oil to increase prices.
b. Public highways get congested because they are nonexclusive.
c. Poaching of the Javan rhino for its priced horns in unprotected forest belts of Indonesia has led to its near extinction.
d. People in Jinbong village now have to pay to be able to fish in the local pond.
e. A farmer shifts from potato to corn cultivation because the latter offers more profits.
c
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Government revenue from a tariff is equal to the amount of the tariff times the quantity imported
a. True b. False Indicate whether the statement is true or false
Society must pay the full opportunity cost of any activity
A) that uses scarce resources. B) that causes costs to rise. C) that increases revenues. D) none of the above.
At a price of $4 per unit, Gadgets Inc. is willing to supply 20,000 gadgets, while United Gadgets is willing to supply 10,000 gadgets. If the price were to increase to $8 per unit, their respective quantities supplied would rise to 45,000 and 25,000. If these are the only two firms supplying gadgets, what is the elasticity of supply in the market for gadgets (use the midpoint formula)?
A. 1.2 B. 0.833 C. 1.0 D. 0.80
The hypothesis suggesting that people combine the effects of past policy changes on economic variables with their own judgment about the future effects of current and future economic policy is referred to as the
A) passive expectations hypothesis. B) adaptive expectations hypothesis. C) rational expectations hypothesis. D) active expectations hypothesis.