Government can use its ability to coerce towards improving economic efficiency by:
A. Reducing the production of output with external benefits
B. Reducing the production of output with public-goods characteristics
C. Increasing the production of output with external benefits
D. Increasing the production of output with external costs
C. Increasing the production of output with external benefits
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A monopolistically competitive firm:
A. sells products that are perfect substitutes for its competitors' products, so must compete on the basis of location. B. will be more successful the more similar its output is to its competitors' output. C. sometimes distinguishes its output from that of its competitors by locating in a more convenient place. D. sells products that are close substitutes for its competitors' products, so will locate as far away from its competitors as possible.
Any factor that shifts the demand curve to the left but does not affect the supply curve will lower the equilibrium price and raise the equilibrium quantity.
Answer the following statement true (T) or false (F)
Normative economics often takes a consequentialist philosophical approach to determine whether a policy is good. ?
Answer the following statement true (T) or false (F)
If an increase in income leads to an increase in the demand for sushi, then sushi is
A) a normal good. B) a complement. C) a neutral good. D) a necessity.