What costs associated with the new miles-per-gallon requirements arise from decisions made in self-interest and in the social interest?
What will be an ideal response?
Automobile producers and buyers make their decisions in pursuit of their self-interest, but boosting gas mileage requires more costly engines, which in turn means the cost of producing automobiles and their prices will rise. President Obama's decision to impose the new regulations is intended to serve the social interest, so all the costs associated with the new miles-per-gallon regulation arise from this decision made in the social interest.
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The quantity of money that people choose to hold depends on which of the following?
I. The price level II. Financial innovation III. The exchange rate A) I B) I and II C) I and III D) I, II, and III
Both buyers and sellers are price takers in a perfectly competitive market because
A) each buyer and seller is too small relative to others to independently affect the market price. B) both buyers and sellers in a perfectly competitive market are concerned for the welfare of others. C) the price is determined by government intervention and dictated to buyers and sellers. D) each buyer and seller knows it is illegal to conspire to affect price.
A government regulation making it very difficult to fire workers will have what effect in the labor market?
a. Demand for workers will decrease. b. The number of people hired will increase. c. There will be no effect on the labor market. d. Companies will fire more people.
In monopolistic competition there? is/are
A) only one seller who faces a downward-sloping demand curve.
B) many sellers who each face a perfectly elastic demand curve.
C) a few sellers who each face a downward-sloping demand curve.
D) many sellers who each face a downward-sloping demand curve.