The graph shown portrays a subsidy to buyers. Once the subsidy is in place, the buyers pay ________ and the sellers receive ________; the difference is ________.
A. $30; $46; the amount of the subsidy
B. $24; $40; the amount of government revenue
C. $24; $40; the amount of the subsidy
D. $40; $24; the amount of the subsidy
Answer: C
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Which of the following is true of exchange?
A) Exchange permits trading partners to expand their total output of goods and services as the result of greater specialization in areas where each has a comparative advantage. B) The total output that trading partners are able to produce is not influenced by whether they trade with each other. C) Exchange is a zero sum activity; if one party gains, the other must lose an equal amount. D) The exchange value of a good is determined by the cost of the resources required to pr
If the owner of an ice-cream stand told a student looking for summer work that he would not hire him even if he worked for nothing, we can infer that
A. the marginal product of the labor is zero or less. B. the owner is producing at the lowest cost. C. the marginal product of labor is rising. D. the average product of labor is rising.
Nominal GDP differs from real GDP because:
a. Real GDP is adjusted for changes in the price level b. Nominal GDP is adjusted for changes in the price level c. Nominal GDP is based on constant prices d. Real GDP is based on current prices
A market situation in which a large number of firms produce similar but not identical products is called
A) pure monopoly. B) monopolistically competitive. C) oligopolistic behavior. D) perfectly competitive.