Which statement is true?
A. You can have a shortage without scarcity.
B. No scarcity will exist at a market equilibrium price.
C. The terms "shortage" and "scarcity" are identical concepts in economics.
D. You can have scarcity without a shortage.
Answer: D
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_________ development reflects efforts to integrate social development, community development, and economic development:
a. Social capital b. Infrastructure c. Locality d. National e. Community economic
Which of the following is an example in which "the big tradeoff" can occur?
A) The government redistributes income from the rich to the poor. B) Ford increases the price of a pickup truck. C) A basketball player signs a $5 million contract. D) A college lowers tuition. E) The price of personal computers falls year after year.
The figure above shows the market for annual influenza immunizations the United States. Area B is the
A) gain in efficiency from the illustrated subsidy. B) remaining deadweight loss when there is the illustrated subsidy. C) deadweight loss when there is not the illustrated subsidy. D) equilibrium with the illustrated subsidy. E) loss in efficiency from the illustrated subsidy.
There are two existing firms in the market for computer chips. Firm A knows how to reduce the production costs for the chip and is considering whether to adopt the innovation or not. Innovation incurs a fixed setup cost of C, while increasing the revenue. However, once the new technology is adopted, another firm, B, can adopt it with a smaller setup cost of C/2. If A innovates and B does not, A earns $20 in revenue while B earns $0. If A innovates and B does likewise, both firms earn $15 in revenue. If neither firm innovates, both earn $5. Under what condition will firm A innovate?
A. C < 30 B. 35 > C > 25 C. 10 > C > 0 D. C > 30