Homework Answers
1. Prohibiting the legal sale of a good because of the good’s external cost is never the answer to a good with negative externalities.Hence, option(D) is correct.
2. After accounting for externalities with a social cost curve, the social cost curve lies above the private cost curve .As a result the new equilibrium price would be higher than before and equilibrium quantity is lower than before. Hence, option(A) is correct.
3. The equilibrium occurs where demand and supply curve intersects .The producer surplus to the drug dealer is the area above the supply curve and below the equilibrium price . So, Producer surplus is represented by the area BP*C. Hence, option (D) is correct.
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MC Qu. 43 Prohibiting the legal sale of a... Prohibiting the legal sale of a good...
MC Qu. 50 Suppose you observe that minor changes... Suppose you observe that minor changes in...
MC Qu. 50 Suppose you observe that minor changes... Suppose you observe that minor changes in supply seem to cause dramatic changes in price with only slight changes in the amount sold, you would conclude that Multiple Choice O demand is inelastic. O demand is perfectly inelastic O demand is elastic O demand is unit elastic. MC Qu. 145 The cross price elasticity of demand... The cross price elasticity of demand is (mathematically) the Multiple Choice 0 percentage change in...
MC Qu. 70 A good like water has few... A good like water has few substitutes...
MC Qu. 70 A good like water has few... A good like water has few substitutes and takes up little of our income to purchase. As a result, its demand is likely to be Multiple Choice Ο elastic. Ο inelastic, Ο unit elastic. Ο perfectly elastic. MC Qu. 125 The amount of money consumers pay... The amount of money consumers pay producers is Multiple Choice the area under the demand curve from the origin to the quantity purchased. the area...
MC Qu. 51 Consumer surplus... Consumer surplus points Multiple Choice rises as equilibrium price rises is...
MC Qu. 51 Consumer surplus... Consumer surplus points Multiple Choice rises as equilibrium price rises is the difference between the minimum price producers are willing to accept for a product and the higher equilibrium price s the difference between the maximum price consumers are willing to pay for a product and the minimum price producers are willing to accept s the difference between the maximum price consumers are willing to pay for a product and the lower equilibrium price MC...
TB MC Qu. 04-38 What type of account is the... Nhat type of account is the...
TB MC Qu. 04-38 What type of account is the... Nhat type of account is the Cost of Goods Sold account? Multiple Choice Contra asset Asset Liability Expense "BMC Qu. 04-51 Anchor Company sold merchandise with a cost... Anchor Company sold merchandise with a cost of $560 to a customer for $890 on account. Due to an error, this sale was never recorded in the accounting records. What effect will the failure to make the necessary entries have on the...
Elure A Figure Q, Q, Quantity Q, Quantity Refer to the figures. Which of the following...
Elure A Figure Q, Q, Quantity Q, Quantity Refer to the figures. Which of the following events would most likely result in inflation? Multiple Choice O C) a shift from D2 to Din Figure A O U a shift from D2 to D3 in Figure B O a shift from D2 to Din Figure B Prev 1 of 50 Next > * að n 00 In situations of sticky prices and negative demand shocks, we would expect firms to Multiple...
Predatory Pricing Which of the followings is not the purpose of predatory pricing? A To drive...
Predatory Pricing Which of the followings is not the purpose of predatory pricing? A To drive competitors out of a market B To prevent entry by potential rivals C To increase its own market power O D to increase output and lower prices Economies and Diseconomies of Scale When a firm gets so large that coordination and management of workers and other inputs becomes costly and difficult, it is experiencing which of the following? O A Diseconomies of scale O...
Need help answering these 5 questions. The first picture is the story containing the information to...
Need help answering these 5 questions. The first picture is
the story containing the information to answer those 5
questions.
This activity is important because around the world many economies- including those of the United States, Canada, and Japan - are based on free enterprise, and many communist and socialist countries, such as China and Russia, are pplying more principles of free enterprise to their own economic systems. Free enterprise provides an opportunity for a business to succeed or fail...
Any reflection or opinion on these two essays? Should Marijuana be legal? 1 answer Within 200...
Any reflection or opinion on these two essays? Should Marijuana
be legal? 1 answer Within 200 words.
1.
A Brief History of the Drug War
Many currently illegal drugs, such as marijuana, opium, coca,
and psychedelics have been used for thousands of years for both
medical and spiritual purposes.
The Early Stages of Drug Prohibition
Why are some drugs legal and other drugs illegal today? It's not
based on any scientific assessment of the relative risks of these
drugs –...
15. Causes of market failure include a. externalities and market power. (b) market power and incorrect...
15. Causes of market failure include a. externalities and market power. (b) market power and incorrect forecasts of consumer demand. c. externalities and foreign competition. d. incorrect forecasts of consumer demand and foreign competition. 16. Which of these consumption activities will most likely impose an external cost? a. An executive plays a vigorous game of golf. b. A student in a dorm plays her CDs at 120 decibels late at night. A young mother exercises to anaerobics video A construction...
FART I TRUE FALSE QUESTIONS (10 points). Please write True (1) or False (F) on the...
FART I TRUE FALSE QUESTIONS (10 points). Please write True (1) or False (F) on the blank Scarcity is the intimited nature of society's resources given society's limited wants 2. A reward is a type of positive incentive. 3. To remove difficulty of double coincidence of wants we use money. 4. An exogenous factor is a variable that can be controlled for inside the model. 5. The PPF will not have a constant slope. 6. The law of demand states...
MC Qu. 50 Suppose you observe that minor changes... Suppose you observe that minor changes in supply seem to cause dramatic changes in price with only slight changes in the amount sold, you would conclude that Multiple Choice O demand is inelastic. O demand is perfectly inelastic O demand is elastic O demand is unit elastic. MC Qu. 145 The cross price elasticity of demand... The cross price elasticity of demand is (mathematically) the Multiple Choice 0 percentage change in...
MC Qu. 70 A good like water has few... A good like water has few substitutes and takes up little of our income to purchase. As a result, its demand is likely to be Multiple Choice Ο elastic. Ο inelastic, Ο unit elastic. Ο perfectly elastic. MC Qu. 125 The amount of money consumers pay... The amount of money consumers pay producers is Multiple Choice the area under the demand curve from the origin to the quantity purchased. the area...
MC Qu. 51 Consumer surplus... Consumer surplus points Multiple Choice rises as equilibrium price rises is the difference between the minimum price producers are willing to accept for a product and the higher equilibrium price s the difference between the maximum price consumers are willing to pay for a product and the minimum price producers are willing to accept s the difference between the maximum price consumers are willing to pay for a product and the lower equilibrium price MC...
TB MC Qu. 04-38 What type of account is the... Nhat type of account is the Cost of Goods Sold account? Multiple Choice Contra asset Asset Liability Expense "BMC Qu. 04-51 Anchor Company sold merchandise with a cost... Anchor Company sold merchandise with a cost of $560 to a customer for $890 on account. Due to an error, this sale was never recorded in the accounting records. What effect will the failure to make the necessary entries have on the...
Elure A Figure Q, Q, Quantity Q, Quantity Refer to the figures. Which of the following events would most likely result in inflation? Multiple Choice O C) a shift from D2 to Din Figure A O U a shift from D2 to D3 in Figure B O a shift from D2 to Din Figure B Prev 1 of 50 Next > * að n 00 In situations of sticky prices and negative demand shocks, we would expect firms to Multiple...
Predatory Pricing Which of the followings is not the purpose of predatory pricing? A To drive competitors out of a market B To prevent entry by potential rivals C To increase its own market power O D to increase output and lower prices Economies and Diseconomies of Scale When a firm gets so large that coordination and management of workers and other inputs becomes costly and difficult, it is experiencing which of the following? O A Diseconomies of scale O...
Need help answering these 5 questions. The first picture is
the story containing the information to answer those 5
questions.
This activity is important because around the world many economies- including those of the United States, Canada, and Japan - are based on free enterprise, and many communist and socialist countries, such as China and Russia, are pplying more principles of free enterprise to their own economic systems. Free enterprise provides an opportunity for a business to succeed or fail...
Any reflection or opinion on these two essays? Should Marijuana
be legal? 1 answer Within 200 words.
1.
A Brief History of the Drug War
Many currently illegal drugs, such as marijuana, opium, coca,
and psychedelics have been used for thousands of years for both
medical and spiritual purposes.
The Early Stages of Drug Prohibition
Why are some drugs legal and other drugs illegal today? It's not
based on any scientific assessment of the relative risks of these
drugs –...
15. Causes of market failure include a. externalities and market power. (b) market power and incorrect forecasts of consumer demand. c. externalities and foreign competition. d. incorrect forecasts of consumer demand and foreign competition. 16. Which of these consumption activities will most likely impose an external cost? a. An executive plays a vigorous game of golf. b. A student in a dorm plays her CDs at 120 decibels late at night. A young mother exercises to anaerobics video A construction...
FART I TRUE FALSE QUESTIONS (10 points). Please write True (1) or False (F) on the blank Scarcity is the intimited nature of society's resources given society's limited wants 2. A reward is a type of positive incentive. 3. To remove difficulty of double coincidence of wants we use money. 4. An exogenous factor is a variable that can be controlled for inside the model. 5. The PPF will not have a constant slope. 6. The law of demand states...
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