Changing the price of a good will usually result in a negative externality
Indicate whether the statement is true or false
False. The effects of a price change are not externalities.
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The opportunity cost of holding money
A. varies inversely with the interest rate. B. varies directly with the interest rate. C. varies inversely with the level of economic activity. D. is zero because money is not an economic resource.
"Job rationing occurs when the quantity of labor demanded exceeds the quantity supplied." Is the previous statement true or false? Explain your answer
What will be an ideal response?
Which of the following is an example for group price discrimination?
A) a BMW selling for more than a VW B) local residents receiving a discount at the local golf course C) the fact that a razor is cheap and blades are expensive D) a hotel charging more for a room if the customers bring pets
Assume a hypothetical case where an industry begins as perfect competition and then becomes a monopoly. As a result of this change
A) price will be higher, output will be lower, and the deadweight loss will be eliminated. B) consumer surplus will be smaller, producer surplus will be greater, and there will be a reduction in economic efficiency. C) price will be higher, consumer surplus will be greater, and output will be greater. D) consumer surplus will be smaller and producer surplus will be greater. There will be a net increase in economic surplus.