Refer to Figure 7.1. Suppose the city passes an ordinance banning loud music, and this directly impacts Angus's legal ability to play his bagpipes. At the equilibrium outcome, the size of the economic pie will be
A) $350.
B) $550.
C) $650.
D) $700.
C
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The above figure shows the situation of a monopolistic competitor in the short run. The maximum economic profits of the firm equal
A) $50,000. B) $30,000. C) 15,000. D) zero.
Answer the following statements true (T) or false (F)
1. If one city has a higher CPI than another city, the city with the higher CPI must have a higher cost of living. 2. COLA is a form of indexation. 3. Only wages or income can be indexed to the CPI. 4. Indexation is a good means of reducing inflation. 5. The value or purchasing power of the dollar can be obtained by dividing $1 by the CPI.
The point where the PPF intersects the horizontal axis is
A) unattainable. B) attainable and productive efficient. C) attainable but productive inefficient. D) attainable and neither productive efficient nor productive inefficient.
Refer to the above supply and demand graph. Point A represents the current equilibrium level of output of this product and point B represents the optimal level of output from society's perspective. This supply and demand graph indicates that there is(are):
A. an overallocation of resources to the production of this product. B. a negative externality from the production of this product. C. spillover benefits to the production of this product. D. spillover costs to the production of this product.