Suppose there has been an increase in supply and a decrease in demand. In which of the following cases would the equilibrium quantity be indeterminate?
a. The supply curve shifts a measurable amount to the right.
b. The demand curve shifts a measurable amount to the left.
c. The relative size of the shifts in the two curves is unknown.
d. The relative size of the shifts in the two curves is equal.
c. The relative size of the shifts in the two curves is unknown.
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Limit pricing occurs when a firm sets price _________________.
Suppose the problem is the stereo noise in the dorm. On the graph on the next page the amplifier dial numbers are located on the horizontal axis. The vertical axis measures the marginal costs and benefits of various levels of music (noise). Also measured on the vertical axis is the marginal cost of insulating the walls to prevent the externalities from penetrating the wall. 
What if negotiation is impossible and you have the rights to play?
A. You will play at 6 and she will suffer through the listening of your playing. B. You will play at 10 and insulate your walls. C. You will play at 3 and she will listen to the music that comes into her apartment. D. She will insulate her walls and you will play at 10.
A higher tax rate could result in lower tax revenues if:
A. attempts to avoid or evade taxes increase. B. the tax has no incentive effects. C. individuals switch from leisure to labor. D. fewer people qualify for government assistance.
Crowding out occurs when the federal government:
A. raises taxes to finance a budget deficit. B. refinances maturing U.S. Treasury bonds. C. borrows by selling bonds to finance a deficit. D. uses a budget surplus to pay off part of the national debt.