When a new good is introduced, consumers have more variety from which to choose, and this in turn increases the cost of maintaining the same level of economic well-being
a. True
b. False
Indicate whether the statement is true or false
False
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Graphically, the market supply curve is obtained by
A) changing the ceteris paribus conditions. B) a change in quantity supplied. C) horizontally summing quantity supplied at various prices for individual producers. D) vertically summing quantity supplied at various prices for individual producers.
When new firms enter a perfectly competitive market,
a. economic profits of existing firms will continue to be zero. b. entering firms will earn zero economic profit upon entry into the market. c. existing firms may see their costs rise if more firms compete for limited resources. d. prices will rise as existing firms raise prices to keep new firms out of the market.
The growth in the number of poor families since 1965 results overwhelmingly came from a growth in the number of what?
a. elderly b. female householders c. children d. immigrants
What happens when the government imposes a unit excise tax on a good?
A. The amount of the tax is added to the current equilibrium price. B. That good's supply curve shifts down by the amount of the tax. C. The demand for the newly taxed good decreases. D. The newly taxed good's supply curve shifts vertically upward by the amount of the per-unit tax being levied.