Briefly identify one activity that is part of the product market, and explain why.
What will be an ideal response?
Should accurately identify and explain one activity that is part of a product market and why. A sample response follows. Purchasing a car is part of the product market because a consumer is buying a good from a firm. A payment is flowing from a household to a firm in exchange for a product.
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Under the national Acid Rain Program (ARP)
a. two phases were defined that began in 1980 b. a cap-and-trade program was defined only for SO2 c. a cap-and-trade program was defined for both SO2 and NOX d. the EPA issued emission allowances that could be used or banked, but not traded
Most economists prefer corrective taxes to regulation as a way to correct the problem of pollution because
a. the market-based solution is less costly to society. b. the market-based solution can result in a greater reduction in pollution. c. the market-based solution raises revenue for the government. d. All of the above are correct.
Scott's Painting Company paints houses. Since Scott's business does not have the name recognition of some of the bigger painting companies, Scott advertises a "Five-Year Money Back Guarantee" to indicate to buyers that his service is of high quality. This guarantee is an example of
a. screening. b. signaling. c. the seller's curse. d. the principal-agent problem.
Refer to Figure 17.3. Assume X units of plants and equipment wear out each year. What will happen to the PPC in the future if the economy currently produces at a point near V?
A. It will stay the same. B. It will shift inward. C. It will shift outward. D. This cannot be determined with the information given.