If the government regulates the market in the above figure in a way to achieve efficiency, then ________ vaccinations will be produced and consumed.
A) 0
B) 30 thousand
C) 50 thousand
D) None of the above answers is correct.
Ques. 2The labor supply curve has a positive slope if the
A) substitution effect outweighs the income effect.
B) income effect outweighs the substitution effect.
C) demand for labor is elastic.
D) demand for labor is inelastic.
Ques. 3Suppose that two soft drink manufacturers, Fizzy Pop and Spritzy Soda, agree to charge the same prices for their soft drinks. This practice is
A) always legal under the antitrust laws.
B) legal as long as Herfindahl-Hirschman index is less than 1,000.
C) legal as long as the firms had a cost justification for setting prices.
D) always illegal under the antitrust laws.
Ques. 4The table above describes the market for paper. The production of paper produces pollution. There are no external benefits. What amount of tax per ton of paper is necessary to produce the efficient quantity of paper?
A) 60
B) zero
C) 40
D) 100
Ques. 5What is a currency drain? How and why does it affect the money multiplier?
What will be an ideal response?
Ques. 6________ is the single biggest factor affecting income distribution in the United States.
A) Location of household
B) Type of household
C) Education
D) Age of household
Ques. 7Which of the following statements about the marginal rate of substitution is NOT correct?
A) It measures the number of units of the good on the horizontal axis that a consumer must be compensated with to give up a unit of the good on the vertical axis, while remaining on the same indifference curve.
B) It is measured by the slope of the indifference curve.
C) It decreases in value when moving downward along a typical-shaped indifference curve.
D) It is constant for goods that are perfect substitutes.
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