If bundles of goods A and B lie on the same indifference curve, one can assume the individual
a. prefers bundle A to bundle B.
b. prefers bundle B to bundle A.
c. enjoys bundle A and B equally.
d. bundle A contains the same goods as bundle B.
c
You might also like to view...
Refer to Figure 9-9. Fenwick currently both produces and imports pistachios. The government of Fenwick decides to restrict international trade in pistachios by imposing a quota that allows imports of only 5 million pounds each year
Figure 9-9 shows the estimated demand and supply curves for pistachios in Fenwick and the results of imposing the quota. Answer questions a-j using the figure. a. If there is no quota what is the domestic price of pistachios and what is the quantity of pistachios demanded by consumers? b. If there is no quota how many pounds of pistachios would domestic producers supply and what quantity would be imported? c. If there is no quota what is the dollar value of consumer surplus? d. If there is no quota what is the dollar value of producer surplus received by producers in Fenwick? e. If there is no quota what is the revenue received by foreign producers who supply pistachios to Fenwick? f. With a quota in place what is the price that consumers of Fenwick must now pay and what is the quantity demanded? g. With a quota in place what is the dollar value of consumer surplus? Are consumers better off? h. With a quota in place what is the dollar value of producer surplus received by producers in Fenwick? Are domestic producers better off? i. Calculate the revenue to foreign producers who are granted permission to sell in Fenwick after the imposition of the quota. j. Calculate the deadweight loss as a result of the quota.
Explain the differences between aggregate demand shocks and aggregate supply shocks
What will be an ideal response?
Use the above figure. If this monopolist was not regulated, the profit-maximizing quantity and price would be
A) Q2 and P1. B) Q2 and P3. C) Q3 and P2. D) Q4 and P1.
Under the national Acid Rain Program (ARP)
a. two phases were defined that began in 1980 b. a cap-and-trade program was defined only for SO2 c. a cap-and-trade program was defined for both SO2 and NOX d. the EPA issued emission allowances that could be used or banked, but not traded