When the price is less than the equilibrium price, some consumers will be willin

Question

When the price is less than the equilibrium price, some consumers will be willing to pay a price higher than the prevailing price. the price will be forced higher. there will be a shortage. All of the above answers are correct. A cost or benefit that arises from production (or consumption) and falls on someone other than the producer (or consumer) is called a property right. a deadweight loss. an externality. public provision. The problem of the Tragedy of the Commons is the absence of incentives to use commonly owned resources. prevent the overuse of commonly owned resources. use privately owned resources. have commonly owned resources. Consumer surplus is defined as: the profit to a buyer in a transaction. demand price minus market price. the area under the demand curve and above the price (ceteris paribus). all of the above. none of the above. "Ceteris paribus" means making all the necessary changes. other things being equal. let the buyer beware. for certain parameters. Which of the following is an example of a positive statement? The foreign sector should be more tightly controlled. Government should not redistribute income. Business firms ought to contribute more to charities. Households are the primary source of saving. In every economic system, choices must be made because resources are and our wants are unlimited; limited B) limited; limited unlimited D) unlimited; unlimited A person goes to college to become an engineer. This is an example of an increase in entrepreneurship. B) increase in the quantity of labor. investment in physical capital. D) investment in human capital. actors of production include only capital, land, and labor. labor and capital (not land, which is fixed), and, labor, capital and entrepreneurship. the economic system.

Explanation / Answer

Solution :

8) D

9) C

Externality exists when there is interdependence between the utility functions of individuals , say individual B's consumption affects another person .

10) B

11) C

12) B

Ceteris paribus is a latin term meaning all other things being constant .

13) D

Positive statements are statements of facts about what was , what is , or what will be .

14) C

15) B

16) C

Related Questions

Navigate

• Browse (All)
• Browse W
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.