In the above figure, CBL is the cost of breaking the law. If it is illegal to buy and sell, then the price per unit will be
A) $500.
B) $400.
C) $300.
D) $200.
C
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A consumer's ______ determines the location of their uncompensated demand curve, while the level of their ______ determines the location of their compensated demand curve.
A. income; well-being B. well-being; income C. indifference curves; income D. preferences; well-being
International trade is most likely to occur wheneve
A) one of the trading nations is self-sufficient B) all of the trading nations are self-sufficient C) one of the trading nations gains from trade D) each of the trading nations gains from trade E) labor is cheaper abroad
The Interstate Commerce Commission (ICC) regulates railroads, barges and trucks. Suppose technical change lowers the costs of railroads. As a result, the ICC permits railroads to lower prices some but also alters the rates of barges and trucks so they
get additional business. The ICC would be acting consistently with A) the capture theory of regulation. B) the public interest theory of regulation. C) the share-the-gains, share-the-pains theory of regulation. D) None of the theories presented in the text since economic regulation is specific to a single industry and not to agencies that cover more than one industry. That is the province of social regulation.
It takes a considerable amount of time to increase the production of pork. This implies that
A. the short-run supply curve for pork is relatively less elastic than the long-run supply curve for pork. B. the long-run supply curve for pork is relatively less elastic than the short-run supply curve for pork. C. a change in the demand for pork will not affect its price in the short run. D. an increase in the demand for pork will elicit a larger supply response in the short run than in the long run.