Brown can brew 4 gallons of stout or 3 gallons of lager every three months, or any linear combination in between. Which statement is true?
A) Brown sacrifices 3/4 gallons of lager for every gallon of stout brewed.
B) Brown sacrifices 1 1/3 gallons of stout for every gallon of lager brewed.
C) Both of the above are true.
D) None of the above is true.
C
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When the social costs exceed the private costs, economists state that there is
A) a positive externality. B) an underproduction of output. C) a negative externality. D) social appreciation of resources.
Automatic stabilizers cause an increase in total revenue for the government as the economy enters a recession.
Answer the following statement true (T) or false (F)
If the government imposes a price ceiling that is lower than the market clearing price, then
A. consumer surplus will decrease while producer surplus will increase. B. both consumer surplus and producer surplus will stay the same. C. both consumer surplus and producer surplus will decrease. D. both consumer surplus and producer surplus will increase.
The Walt Disney Company uses cost-plus pricing to determine the prices it charges for admission and rides at Disneyland and Walt Disney World
Indicate whether the statement is true or false