If this is an open economy, the price of a car will be ________.
A. $10,000/car
B. $8,000/car
C. $14,000/car
D. $6,000/car
Answer: A
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Economic incentives are designed to make individual self-interest coincide with social interest. According to economists, which of the following methods of pollution control best uses economic incentives to reduce pollution?
A) imposing quantitative limits on the amount of pollution and imposing a penalty for non-compliance with these limits B) rewarding environmental groups for monitoring the activities of private firms that produce products which generate pollution C) requiring the installation of specific pollution control devices D) instituting a system of tradable emission allowances
If the government desires to raise a certain amount of revenue by taxing a monopoly, an ad valorem tax will
A) generate the same loss of consumer surplus as a specific tax. B) generate a greater loss of consumer surplus than a specific tax. C) generate a smaller loss of consumer surplus than a specific tax. D) generate no loss of consumer surplus.
With the aging of the American population, it might be necessary to reduce the medical benefits to elderly. How do you feel about this idea?
What will be an ideal response?
According to the table shown, when 1 unit is produced:
This table shows the total costs for various levels of output for a firm operating in a perfectly competitive market.
A. marginal costs exceed marginal revenue, and the firm should produce more.
B. marginal revenue exceeds marginal costs, and the firm should produce more.
C. marginal revenue exceeds marginal costs, and the firm should produce less.
D. marginal costs exceed marginal revenue, and the firm should produce less.