Suppose there are three houses in a neighborhood. The residents are considering installing street lights and are trying to determine how many lights need to be installed
Each resident's willingness to pay for street lights is given in the table below.
Number of Street Lights House 1 House 2 House 3
1 $300 $400 $200
2 $280 $360 $160
3 $240 $300 $120
4 $180 $220 $100
5 $80 $100 $10
If the cost of installing one light is $500, how many lights will be installed?
A) 1
B) 2
C) 4
D) 5
C
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In Figure 5.8, if the supply curve moves from S2 to S5,
,
A. the firm will go from making an economic profit to a loss but one that is not big enough to make it want to shutdown. B. the firm will make a smaller economic profit than they used to. C. the firm will go from making an economic profit to a normal profit. D. the firm will go from making an economic profit to a loss that is big enough to make it want to shutdown.
Which of the following statements is true?
A. Sales, excise, and flat-rate taxes violate the ability-to-pay principle of taxation fairness because each results in a smaller dollar burden on the poor than the rich. B. Government failure may occur if voters are rationally ignorant. C. Special-interest group political pressure results only from programs for which benefits outweigh costs. D. Majority-rule voting and benefit-cost analysis result in the same projects being undertaken.
The price elasticity of supply
A) is the slope of the supply curve. B) is the percentage change in quantity supplied divided by the percentage change in price. C) is always negative. D) does not vary between the long and the short run.
The concept of "global competitiveness"
A) is not practical because economic well-being is evaluated within each country. B) means that the economic well-being of each nation must be compared with nations with same size population. C) means that the economic well-being of each nation must be compared with nations on the same continent. D) means that the export-import ratio of each nation must be compared.