The concept that Mr. Jones is going to enjoy the benefits of police protection even though he no longer pays taxes is called
A) the free-rider problem.
B) the negative externality principle.
C) the principle of rival consumption.
D) the principle of anti-trust.
A
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Alpha can produce either 18 tons of oranges or 9 tons of apples in a year, while Omega can produce either 16 tons of oranges or 4 tons of apples. The opportunity costs of producing 1 ton of apples for Alpha and Omega, respectively, are: a. 0.25 tons of oranges; 0.5 tons of oranges. b. 9 tons of oranges; 4 tons of oranges
c. 2 tons of oranges; 4 tons of oranges. d. 4 tons of oranges; 2 tons of oranges.
Refer to the market diagram. Relative to the surplus they would receive in a competitive market, consumers lose how much surplus because there is a monopoly?
The following questions refer to the accompanying market diagram. PC and QC are the equilibrium price and quantity if the firm behaves competitively, and PM and QM are the equilibrium price and quantity if the firm is a simple monopoly.
a. Area F + G + H
b. Area C + D + E
c. Area E + H
d. Area A + B
If business taxes rise in a large open economy, it causes the current account to ________ and saving to ________
A) fall; fall B) rise; remain unchanged C) fall; remain unchanged D) rise; fall
When economic rent exists,
A) the price is equal to the opportunity cost of the resources. B) price is the same as the discount rate. C) resources are allocated inefficiently. D) resources are allocated efficiently.