Refer to Figure 6.4. If consumers currently gain at the expense of producers, a maximum price must have been set at:
A. A.
B. B.
C. C.
D. There is not sufficient information.
Answer: C
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In the United States, the unemployment rate for women is typically ________ than it is for men, and the typical woman earns ________ than typical man earns
A) higher; more B) higher; less C) lower; more D) lower; less
What is rent seeking and how does it influence the inefficiency of monopoly?
What will be an ideal response?
Diversification reduces
a. only market risk. b. only firm-specific risk. c. neither market or firm-specific risk. d. both market and firm-specific risk.
The biggest difference between using a Pigovian tax or a tradable allowance to correct for a negative externality is:
A. the tax creates an efficient outcome, and the tradable allowances do not. B. the government collect revenues from the tax, and the private parties trade quota rights on their own. C. the tax maximizes total surplus, but the tradable allowances do not. D. All of these are differences between the two government policies.