The table gives the demand and supply schedules for fireworks on the Island of Big Bang. In the past, because many deaths have resulted from accidents involving fireworks, the government has banned fireworks and is enforcing the ban
A $5 a firework penalty on buyers of fireworks and a $4 a firework penalty on sellers will reduce the number of fireworks bought to ________ a week and the price paid by buyers will be ________ a firework. A) 80; $7
B) 40; $13
C) 0; an unknown amount
D) 160; $11
B
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John is trying to decide how to divide his time between his job as a stocker in the local grocery store, which pays $7 per hour for as many hours as he chooses to work, and cleaning windows for the businesses downtown. He makes $2 for every window he cleans. John is indifferent between the two tasks, and the number of windows he can clean depends on how many hours he spends cleaning in a day, as shown in the table below:Hours PerDay CleaningWindowsTotal Numberof WindowsCleaned0017211314416517If we plot John's opportunity cost per window on the vertical axis and the number of windows cleaned each day on the horizontal axis, we will have John's ________ curve for window-cleaning services.
A. supply B. benefit C. production possibilities D. demand
The higher the number of people who have access to e-mail, the more valuable it is to everyone. This is an example of a(n) ________
A) moral hazard B) adverse selection C) network externality D) negative externality
Technological advancement creates unemployment in firms that shut down or labor that is laid off. Wealth in this case is
a. Destroyed, since firms are shutting down and production of certain goods and services decreasing b. Created, since the dislocated labor and resources are absorbed by new firms created through the technological innovation, moving them to higher value use c. Destroyed, since technological progress is leading to higher unemployment d. None of the above
The target price approach to the farm problem distorted the market less than the support price approach because the target price
a. does not allow the market to clear, whereas the support price does b. increases farm incomes by creating a shortage, whereas the support price creates a surplus c. permits the market to clear, whereas the support price does not d. is set equal to the equilibrium price e. is independent of market conditions and thus gives farmers a steady income