Anna's Antiques expects to get two bidders for the unique china teacup it sells. Each of the bidders can either have a high-value of $100 or a low-value of $70 with equal probability. If Anna can only set one price, what price should she set?
a. $100
b. $70
c. Any price higher than $100
d. Any price lower than $70
a
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Before the policy was put into effect, estimated consumer surplus (in thousands of dollars) was valued at
A collaborative federal and state program has been proposed in response to acid rain damagein Newport Bay, Maryland. To estimate the incremental benefits of the program, you use thetravel cost methodbasedupon the following pre- and post-policy recreational demand functions: Pre-policy: P = 62 – 0.02V1 Post-policy: P = 80 – 0.02V2, where V is the number of visitors (in thousands) and P is the admission fee. Assume the admission fee is set at $20 per visitor. a. 2,100 b. 44,100 c. 90,000 d. 45,900
Which of the following is true of import-substitution strategies?
a. They dominate the strategies of the developing world. b. They focus on the production of goods not produced in developed countries. c. They focus on the production of exportable goods. d. These strategies lower the price of the domestically produced goods than the imported goods. e. They generally require the removal of import barriers like tariffs or quotas.
What does the 45-degree line in the Lorenzo curve model indicate?
a. It shows how the population is distributed in the country. b. It shows the actual distribution of income with the population distribution. c. It divides income distribution in half with population distribution. d. It shows perfect equality between income distribution and population distribution.
The natural rate of unemployment will rise for all of the following reasons EXCEPT:
A) more generous terms for unemployment compensation. B) an increase in union membership. C) an increase in labor productivity that translates into greater demand for labor. D) a surge in the number of young and inexperienced workers.