The principle that "More is better" results in indifference curves
A) sloping down.
B) not intersecting.
C) reflecting greater preferences the further they are from the origin.
D) All of the above.
D
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Cleantown and Grimyville are identical except for the inferior air quality in Grimyville. All potential residents have identical tastes. Apartments in Cleantown rent for $400 per month. The cost of breathing Grimyville air is $75 per month. The quantity of apartments in each town is fixed.
(i) Explain why an apartment in Grimyville must rent for $325 per month. (ii) Consider the social gain created by Grimyville apartments. How is this social gain divided between the residents and the landlords? (iii) Suppose that the air in Grimyville is brought up to Cleantown standards. Who benefits from the cleaner air?
Being the first to sell a particular good can give a firm advantages over other firms that sell similar products. What is the name given to these advantages?
A) first come, first served B) follow the leader C) first-mover D) first to market
Tolls that drivers pay to use toll roads, the fares that riders pay on buses and trains, and the tuition that students pay at public universities are examples of the government making a good (Click to select)
a. rival b. nonexcludable c. nonrival d. excludable
Consumer surplus
A. is the area below demand and above market price over all the units consumed. B. is positive for all but the last unit purchased. C. for a particular unit of consumption is computed by taking the difference between demand price and market price. D. added to producer surplus provides a measure of the net gain to society from the production and consumption of the good. E. all of the above