If a series of severe storms in the Atlantic Ocean drastically significantly disrupted the transatlantic slave trade, which would most accurately describe the market for indentured servants in colonial America?
a. The price and quantity of servants would increase.
b. The price and quantity of servants would decrease.
c. The price of servants would increase and the quantity of servants would decrease.
d. The price of servants would decrease and the quantity of servants would increase.
a. The price and quantity of servants would increase. The storm would decrease the supply of slaves, thus increasing their price. Servants and slaves are substitutes. The demand for servants would increase, thus increasing both the price and quantity of servants.
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If resources are used efficiently, then ________
A) marginal social cost is minimized B) consumer surplus plus producer surplus is maximized C) consumer surplus equals producer surplus D) producer surplus is maximized
Individuals play ____ in causing pollution
a. almost no role b. a large but decreasing role c. a major role d. a reconstructive role
In the long run, a profit-maximizing firm will choose to exit a market when
a. average fixed cost is falling. b. variable costs exceed sunk costs. c. marginal cost exceeds marginal revenue at the current level of production. d. total revenue is less than total cost.
Which statement is false?
A. The substitution effect means that you trade away leisure time for more money. B. The income effect means that you trade away some money for more leisure time. C. Both statements are true.