The government is considering placing a tax on cigarettes to raise revenue to finance health-care benefits. The demand for cigarettes is price inelastic Which of the following statements is True ? A. This tax will not raise much revenue either…
If a government were to fix a minimum wage for adult workers, economists would predict ? A. wages in general would fall as employers tried to hold down costs B. fewer young workers would be employedC. the costs and prices…
In a free market system rationing occurs when there are increases in ? A. price B. quantity C. demandD. supply
Economics say that there has to be some from of rationing whenever ? A. inflation occurs B. there are externalities C. merit goods are producedD. there is excess demand
If a maximum price is set below equilibrium there will be ? A. A price fall B. A price increaseC. Excess supply D. Excess demand
A public good ? A. Is provided by the government B. Is freeC. Has the properties of being non-excludable and non-diminishable D. Gas external costs
Agricultural prices tend to be unstable because ? A. Supply is price elastic B. Demand is price elastic C. Supply is stableD. Demand and supply are price inelastic
If the price in a market is fixed by the government above equilibrium ? A. There is excess equilibriumB. There is excess supply C. There is excess demand D. There is equilibrium
A positive externality occurs when ? A. The social marginal costs are higher than the private marginals costs B. A product is not provided in the free market C. The social marginal cost equal the social marginal benefit D. The…
Income inequality can be high in the free market and should be reduced This is an example of What ? A. Judicial economic statement B. Positive economic statement C. Formative economic statementD. Normative economic statement