If your local gasoline station raised its price by 20 percent, its sales of gasoline would decrease substantially because your local gas station
a. has little or no market power.
b. is small relative to the size of the gasoline market.
c. is a competitive firm.
d. All of the above are correct.
d
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A firm whose production process exhibits constant returns to scale would find that if it doubled all of its inputs, its output would ________.
A. double B. less than double C. more than double D. remain constant
The discretionary change of government expenditures or taxes to achieve national economic goals is
A) a direct expenditure upset. B) fiscal policy. C) Ricardian-equivalence theorem. D) supply-side economics.
________ is a winning strategy in a game of bargaining.
A. Patience B. First-mover advantage C. Self-interested behavior D. Cooperation
Figure 6-1
illustrates the four possibilities of the distribution of costs and benefits among voters for a government project. For which type would the government most likely fail to undertake many projects that would be considered efficient or productive (in other words, do too few of them relative to economic efficiency)?
a.
type A
b.
type B
c.
type C
d.
type D