Refer to the information provided in Figure 16.2 below to answer the question(s) that follow.
Figure 16.2Refer to Figure 16.2. The unregulated (market) amount of cars is
A. 25.
B. 35.
C. zero because any production results in an external cost.
D. indeterminate from the information given.
Answer: B
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Social disapproval carries a higher cost in all of the following cases except when you:
A. know the people around you. B. care about the opinions of people around you. C. expect to interact with the people around you again in the future. D. have very loose interactions with community members.
Parity price programs were designed to help farmers, not consumers of farm goods
Indicate whether the statement is true or false
When an entrepreneur introduces a new improved product that is highly valued relative to cost
a. consumers will be worse off. b. the demand for the products that are good substitutes for the new product will increase. c. some of the existing products will become obsolete and businesses producing those products will fail. d. total employment will decline if there are business failures.
Disposable income is obtained by
A. subtracting personal income taxes from personal income. B. subtracting personal income taxes from national income. C. adding transfer payments to national income. D. adding transfer payments to personal income.