A decrease in equilibrium price increases consumer surplus because existing consumers leave the market due to this change in price
a. True
b. False
Indicate whether the statement is true or false
False
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Why do governments in less-developed nations impose tariffs?
A) The nation's total income will be increased. B) The government gains revenue from the tariff. C) The government diversifies its economy. D) The national security of the country definitely is improved. E) The government's low-paid workers are protected from high-paid foreign workers.
Based on the above figure showing a budget line, which of the following combinations of soda and bottled water are not affordable?
A) 3 bottles of water and 4 cans of soda B) 4 bottles of water and 2 cans of soda C) 2 bottles of water and 6 cans of soda D) None of the above, that is, all the combinations listed are affordable.
What is asymmetric information?
What will be an ideal response?
Merit goods are
a. goods that everyone wants b. goods that are rewards for appropriate behavior c. the same as public goods d. goods that some people think we need more of e. only produced by the government