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Which of the following are public goods?a. Air bags b. Pencils c. Cycle helmets d. Smoking e. Contact lenses

Suppose the government imposes rent control (a price ceiling) below the equilibrium price for rental housing. Which of the following will result? a. Black markets b. The quality of existing rental housing deteriorates c. Shortages d. All of the above

Will each of the following changes in price cause total revenue to increase, decrease, or remain unchanged? a. Price falls, and demand is elastic. b. Price rises, and demand is elastic. c. Price falls, and demand is unitary elastic. d. Price rises, and demand is unitary elastic. e. Price falls, and demand is inelastic. f.

If the price of a good or service increases and the total revenue received by the seller declines, is the demand for this good over this segment of the demand curve elastic or inelastic? Explain.

A change in a third variable not on either axis of a graph is illustrated by a a. horizontal or vertical line. b. movement along a curve. c. shift of a curve. d. point of intersection.

What is used to illustrate an independent relationship between two variables? a. An upward-sloping curve b. A downward-sloping curve c. A hill-shaped curve d. A horizontal or vertical line

The principle that there is a direct relationshipbetween the price of a good and the quantity sellers are willing to offer for sale in a defined time period, ceteris paribus, is the ___________. Q116: Which of the following will increase the demand for large automobiles? a. A fall in the price of small automobiles b.

Which of the following are public goods? a. Air bags b. Pencils c. Cycle helmets d. Smoking e. Contact lenses

Suppose coal-burning firms are emitting excessive pollution into the air. Suggest two ways the government can deal with this market failure. Explain the impact of external costs and external benefits on resource allocation. Why are public goods not produced in sufficient quantities by private markets?

Vaccination shots provide __, whichmeans sellers devote too few resources to produce this product. Two basic solutions to this type of market failure are laws to require consumption of shots and special subsidies.