An analysis of the case of Harley-Davidson reveals that the deadweight loss of import protection ___________ the gain in future producer surplus.
a. was slightly less than
b. slightly exceeded
c. vastly exceeded
d. was roughly the same as
Ans: a. was slightly less than
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Government clean up toxic waste sites is _____
a. justified on public good grounds b. justified on externality grounds c. justified on equity grounds d. justified on technical monopoly grounds
In a market where the tragedy of the commons arises, the equilibrium quantity is both individually ________ and collectively ________.
A. inefficient; rational B. irrational; efficient C. rational; inefficient D. efficient; irrational
Refer to the information provided in Figure 2.5 below to answer the question(s) that follow.
Figure 2.5Refer to Figure 2.5. For this economy to move from Point C to Point B, ________ additional LCD TVs could be produced when the production of OLED TVs is reduced by 20.
A. exactly 30 B. exactly 60 C. fewer than 30 D. more than 30
Mark has two job offers when he graduates from college. Mark views the offers as identical, except for the salary terms. The first offer is at a fixed annual salary of $40,000. The second offer is at a fixed salary of $20,000 plus a possible bonus of $40,000. Mark believes that he has a 50-50 chance of earning the bonus. If Mark takes the offer that maximizes his expected utility and is risk-loving, which job offer will he choose?
A. Mark will take the first offer. B. Mark will take the second offer. C. Mark is indifferent between the offers-both yield the same expected utility. D. Indeterminate from the given information.