A perfectly inelastic demand curve is shown as a correct answers vertical line
When it comes to pollution, economists believe that the government must correct answers allow firms to pollute as long as they account for the marginal cost of their pollution.
If the quantity demanded of soda incr...
Econ 402 || A+ Graded Already.
A perfectly inelastic demand curve is shown as a correct answers vertical line
When it comes to pollution, economists believe that the government must correct answers allow
firms to pollute as long as they account for the marginal cost of their pollution.
If the quantity demanded of soda increases by 4% when the price of coffee increases by 16%, the
cross-price elasticity of demand between soda and coffee is: correct answers 0.25.
The price elasticity of supply tends to become more elastic in the long run correct answers True
For which of the following goods would the imposition of a tax most likely improve the
efficiency
of the market outcome? correct answers the production of a good with external costs
Which of the following best defines a public good? correct answers A public good is available
for anyone to utilize, regardless on who pays and who doesn't.
An example of a public good is: correct answers national defense.
space exploration.
a lighthouse
If the price elasticity of supply is equal to zero, then supply is perfectly elastic. correct answers
False
Lenny buys less oatmeal for breakfast when his income rises. This means that, for Lenny: correct
answers the income elasticity of demand for oatmeal is negative
The optimum level of pollution abatement is where the marginal benefit of abatement is greater
than the marginal cost. of abatement. correct answers False
Which of the following would be classified as an external cost? correct answers You are not able
to study at night because there is so much noise coming from the dorm room
next to yours.
If demand for a good is elastic and price rises, total revenue will fall. correct answers True
Which of the following would be an example of an external benefit? correct answers More
people start to ride the bus and as a result air pollution is reduced.
Two goods are complements if the: correct answers cross-price elasticity is negative.
What defines a situation where a person consumes a good without having to pay for it? correct
answers the free-rider problem
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