When new farmers enter the wheat industry, the equilibrium price of wheat
a. always falls.
b. falls only if existing firms gang up on the entrant.
c. falls only if existing firms are earning no economic profit.
d. falls only if the new firm is more efficient than existing firms.
a
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The number of pre- and post-policy visitors, V1 and V2, (in thousands) is ____ and _____, respectively.
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; 3000 c. 61.6; 79.6 b, 44,100; 90,000 d. none of the above
Information asymmetries are defined to be when:
A. one party to a transaction has more information that another. B. information isn’t readily available to anyone. C. both sides to a transaction have equal information. D. one party withholds information from the other party.
If the economy in the graph shown is currently at point B, and the government increases its spending, the likely outcome will be that the:
A. economy will increase its level of output.
B. economy will experience deflation.
C. economy's unemployment rate will increase.
D. All of these are likely to be true.
The most important reason for our slow rate of productivity growth over the last three decades (of those listed below) is
A. lagging business sales. B. foreign imports. C. our low savings rate. D. high tax rates.