The federal government is concerned about the negative effects of cigarette smoking in the United States. Suppose Congress is considering two plans. One plan would limit the production of cigarettes. The other would require manufacturers to include graphic photos on cigarette packages of people suffering cancer's effects. Which of the following statements is true?
a. Both programs would increase the price of cigarettes.
b. Both programs would reduce the quantity of cigarettes sold.
c. Both programs would decrease revenues for cigarette manufacturers.
d. All of the above are correct.
b
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The market for watermelons in Alabama is perfectly competitive. A watermelon producer making zero economic profit could make an economic profit if the
A) average total cost of selling watermelons does not change. B) average total cost of selling watermelons rises. C) average total cost of selling watermelons falls. D) marginal cost of selling watermelons does not change. E) marginal cost of selling watermelons rises.
In a Prisoners' Dilemma, both players are willing to pay to be forced to cooperate.
Answer the following statement true (T) or false (F)
An expansion of the production possibilities frontier is
A) called economic growth. B) proof that scarcity is not a binding constraint. C) a free gift of nature. D) something that has occurred only rarely in history.
Food and drug labeling is a low-cost way to inform consumers about the contents of foods and the dangers of drugs
Indicate whether the statement is true or false