In Quarto, farmers must obtain permission from the government to grow and sell tobacco beyond a stipulated level. The government sets a quota on the acres of land that a farmer can cultivate, but farmers may rent out their land and the quota associated with it. This is an example of a _____
a. corrective tax
b. property tax
c. tradable permit
d. gift tax
c
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Which statement is true?
A. The firm is making a profit in the short run.
B. The firm is making a profit in the long run.
C. The firm is making a loss in the short run.
D. The firm is making a loss in the long run.
Lisa eats both pizzas and burritos. If the price of a pizza increases, Lisa's opportunity set
A) becomes larger. B) becomes smaller. C) is unchanged. D) cannot be determined without more information.
Refer to the information provided in Figure 23.1 below to answer the question(s) that follow.
Figure 23.1Refer to Figure 23.1. The ________ for this household is 0.5 and the ________ is also 0.5.
A. MPC; MPS B. consumption function; saving function C. MPS; saving function D. MPC; consumption function
What is ‘market failure'? Explain one way in which government can help overcome such failure
What will be an ideal response?