If the price of a visit to Sea World exceeds the marginal cost of the visit by $13, a producer surplus exists for Sea World." Is this statement true or false? Explain your answer
What will be an ideal response?
The statement is true. Anytime the price exceeds the marginal cost, there is a producer surplus. In this case, the producer surplus is $13 dollars.
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Part of the pollution problem is due to
a. the absence of markets for goods like clean air and clean water. b. the lack of well-defined property rights to clean air and clean water. c. the unreliability of voluntary programs to cut pollution. d. All of the above are correct.
Some economic studies have shown that mandatory seat belt laws do not lead to a reduction in traffic fatalities
Indicate whether the statement is true or false
Roger lives in Iceland and purchases a snowmobile manufactured in the United States. This purchase is
A. both a U.S. and Icelandic export. B. both a U.S. and Icelandic import. C. a U.S. import and an Icelandic export. D. a U.S. export and an Icelandic import.
Consider a used car market in which half the cars are good and half are bad (lemons). A rational buyer in this market should
A) offer to pay a price equal to the most she would pay for a good car. B) offer to pay a price equal to the most she would pay for a lemon. C) offer to pay a price somewhere between the price she would pay for a good car and the price she would pay for a lemon. D) save up and buy a new car.