When the government bans a good it:
A. increases surplus more than any other solution to the nonexcludability problem.
B. is an easy, but often ineffective, solution to the nonexcludability problem.
C. creates a more efficient solution than any other to the nonexcludability problem.
D. is the easiest and most effective solution to the nonexcludability problem.
Answer: B
You might also like to view...
The quantity theory of money states that in the long run
A) the price level will not consistently rise, it will fluctuate. B) an increase in the quantity of money results in an equal percentage increase in the price level. C) a rise in the price level rises causes the quantity of money to increase. D) an increase in the quantity of money increases real GDP by a smaller percentage.
Suppose a restaurant is trying to determine how much to charge for a bowl of chili, and decides to run an experiment to see how much its customers are willing to pay by allowing them to set their own price for this menu item
a. Is charging a customer the price he or she is willing to pay for the bowl of chili an example of price discrimination? Briefly explain. b. What is it called when a firm knows every consumer's willingness to pay, and can charge every consumer a different price? What happens to consumer surplus in this situation?
Historically, the U.S. steel industry has been a good example of
a. monopolistic competition b. a cartel c. a pure monopoly d. the kinked demand curve model of oligopoly e. the price leadership model of oligopoly
Which definition of the money supply includes credit cards?
a. M1. b. M2. c. M3. d. None of these includes credit card balances.