In Figure 3-6, suppose D1 and S1 indicate initial conditions in the market for ice cream. Which of the following changes would tend to cause a shift from S1 to S2 in the market for ice cream?
a. an increase in the price of sugar, an ingredient used to produce ice cream
b. a decrease in the price of frozen yogurt, a substitute for ice cream
c. abnormally hot weather that temporarily increases consumer desire for ice cream
d. a decrease in the price of milk, an ingredient used to produce ice cream
a. an increase in the price of sugar, an ingredient used to produce ice cream
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In the Nash equilibrium of a prisoner's dilemma:
A. there is unrealized opportunity for both to gain. B. both players have equal payoffs. C. there is no cash left on the table. D. total economic surplus is maximized.
Briefly explain what is included in the following provisions which are a part of the Patient Protection and Affordable Care Act (ACA):
-the individual mandate -the employer mandate -regulation of private insurers -state health exchanges
An external cost is created when you
A) buy a sandwich for lunch. B) litter on the side of the road. C) graduate from college. D) buy flowers for your mother on Mother's Day.
In general, a country that adheres to the rule of law has
A. a lower level of real Gross Domestic Product (GDP) per capita. B. no relationship to the level of real Gross Domestic Product (GDP) per capita. C. an inverse relationship to the level of real Gross Domestic Product (GDP) per capita. D. a higher level of real Gross Domestic Product (GDP) per capita.