(Figure: The Market for Round-Trip Airline Flights) Look at the figure The Market for Round-Trip Airline Flights. The supply and demand graph represents the market for round-trip airline flights between Boston and New York. Suppose the mayor of New York decides to limit the number of flights to Q1 to reduce air pollution. What area or areas represent consumer surplus after the quota is in place?
A) c+e
B) a
C) b+d+f
D) a+b+c
B) a
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Refer to the scenario above. Beth should use ________ to play this game
A) forward induction B) backward induction C) mixed strategies D) her dominated strategy
Transaction costs
a. can keep private parties from solving externality problems. b. are incurred in the production process due to externalities. c. increase when taxes are imposed to correct negative externalities. d. are eliminated when the government intervenes in a market with externalities.
An increase in the capital stock shifts
a) short-run aggregate-supply curve to the left and long-run aggregate-supply curve to the right. b) short-run aggregate-supply curve to the right but does not shift long-run aggregate-supply curve. c) long-run aggregate-supply curve to the right but does not shift short-run aggregate-supply curve. d) both short-run and long-run aggregate-supply curve to the right.
Fred was working as a sales rep for a firm, and just completed an MBA by taking courses at night. Fred quits his job to pursue a management position. Fred would be considered:
A. structurally unemployed. B. frictionally unemployed. C. classically unemployed. D. underemployed.