The ________ effect of a price change refers to the impact of a change in the price of a good on a consumer's purchasing power
A) income B) substitution C) ceteris paribus D) demographics
A
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One way a government might protect monopoly rights is by:
A. granting a patent. B. heavily taxing alcohol and cigarettes. C. running unsubsidized state-owned enterprises that compete with private firms. D. All of these are ways the government protects monopoly rights.
If a country had a trade surplus of $50 billion and then its exports rose by $30 billion and its imports rose by $20 billion, its net exports would now be
a. $0 billion.
b. $20 billion.
c. $40 billion.
d. $60 billion.
Figure 8.12 shows a demand and costs of an unregulated monopoly. The negatively sloped long-run average cost curve reflects that:
A. the firm's total cost of production decreases as its output increases. B. the firm's profit increases as its output increases. C. there exist large economies of scale in production. D. All of these are correct.
When the government pays part of my university education, it is
A. internalizing an external cost. B. using direct regulation to discourage an external cost. C. using taxes to discourage an external cost. D. subsidizing an external benefit.