When does a shortage occur?
What will be an ideal response?
A shortage occurs when the price is below the equilibrium price. When the price is less than the equilibrium price, the quantity demanded is greater than the quantity supplied.
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If fast food is an inferior good then:
A. the demand for fast food will fall as income rises. B. the demand for fast food will fall as income falls. C. the quantity of fast food demanded will rise as the price of fast food rises. D. the demand for fast food will fall as the price of fast food rises.
Answer the following statement(s) true (T) or false (F)
1.Whether or not people have identical tastes, the marginal entrant is indifferent about using a common property. 2. Whether or not people have identical tastes, a commonly owned property creates no social value. 3. Whether or not people have identical tastes, free entry to a common property leads to a suboptimal outcome. 4. The problem with splitting checks is that no one orders as much as they truly want to eat in order to keep the total bill low. 5. A market failure occurs when the government steps in and failingly attempts to alleviate the tragedy of the commons.
All of the following would be considered explicit costs of operating a business except
A) the rental value of equipment the company owns and uses for its own production. B) advertising expenses. C) utility expenses. D) the cost of raw materials used in production.
The total costs of regulation
A) include increased taxes and increased prices of the products being regulated. B) are paid entirely by the regulated industries. C) are much higher than just the explicit government outlays to fund the administration of various regulations. D) are paid entirely by the consumers of regulated industries.