Government licensing of occupations or trades
A) has usually been created over the objections of sellers in the licensed industry.
B) is more often supported than opposed by the persons and firms to be regulated.
C) is usually supported by legislators because they want to protect consumers against inferior-quality products.
D) will not reduce competition if it merely imposes higher costs on potential entrants into the occupation or trade.
B
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College education tends to result in a negative externality because the recipient does not receive the full benefit of the education
Indicate whether the statement is true or false
Economic profit is equal to the difference between:
A) total revenue and the full opportunity cost of all the resources used in production. B) total revenue and implicit costs. C) accounting profit and explicit costs. D) implicit and explicit costs.
A shift of the U.S. demand curve for Mexican pesos to the left and a decrease in the pesos price per dollar would likely result from:
a. an increase in the U.S. inflation rate relative to the rate in Mexico. b. a change in U.S. consumers' tastes away from Mexican products and toward products made in South Korea, India, and Taiwan. c. U.S. buyers perceiving that domestically-produced products are of a lower quality than products made in Mexico. d. all of these.
Quickie Inc, a perfectly competitive firm, currently maximizes profit by producing 400 units of output. If its marginal cost is equal to $25 and its average total cost is $20, then how much is it earning in economic profit?
a. Economic profit is always equal to zero in perfect competition. b. $10,000 c. $8,000 d. $2,000 e. $4,000