Welfare economics explains which of the following in the market for televisions?
a. The government sets the price of televisions; firms respond to the price by producing a specific level of output.
b. The government sets the quantity of televisions; firms respond to the quantity by charging a specific price.
c. The market equilibrium price for televisions maximizes the total welfare of television buyers and sellers.
d. The market equilibrium price for televisions maximizes consumer welfare and minimizes producer profit.
c
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Federal government expenditures, as a percentage of GDP,
A) rose from 1950 to 1991, fell from 1992 to 2001, and have risen from 2001 to the present. B) rose from 1950 to 1980, fell from 1981 to 2001, and have risen from 2001 to the present. C) have fallen since the early 1950s to the present. D) rose from 1950 to 2001 and then fell from 2001 to the present. E) have risen since the early 1950s to the present.
If the cross price elasticity of demand between two commodities is positive, then these commodities are
A) are superior. B) are complements. C) are substitutes. D) are inferior.
Which of the following has been observed in the developing countries during 1990-2016?
A. The East Asian countries like South Korea, Singapore, and Taiwan reported negative growth rates. B. Countries like China and Vietnam reported positive but low growth rates. C. Several of the countries in Eastern Europe and Central Asia that were making a transition from a centrally planned economy to a market-based economy reported a decline in the per capita income. D. The dispersion in the growth rates of the developing countries has been negligible during 1990-2016.
Mass marketing is
A. advertising intended to reach as many consumers as possible. B. advertising that permits a consumer to follow up directly by searching for more information and placing direct product orders. C. advertising targeted at specific consumers. D. advertising that targets a specific audience and allows the consumer to follow up directly by placing direct product orders usually through television or radio.