Q: The evidence on most environmental pollutants (lead in the air and
The evidence on most environmental pollutants (lead in the air and water, sulfur in the air, etc.) is that a) they are not nearly as harmful as once thought. b) they are increasing at an alarming ra...
See AnswerQ: The introduction of e-cigarettes provides a substitute for regular cigarettes
The introduction of e-cigarettes provides a substitute for regular cigarettes. The result is likely that the a) elasticity of supply increases. b) elasticity of supply decreases. c) elasticity of...
See AnswerQ: Using an interest rate of 5%, which figure has the smallest
Using an interest rate of 5%, which figure has the smallest present value? a) $5,000 b) $5,050 to be received two years from now c) $5,075 to be received three years from now d) $5,500 to be recei...
See AnswerQ: When a firm chooses to shut down, it is a
When a firm chooses to shut down, it is a) making a poor decision because it should always produce where marginal cost equals marginal revenue. b) making a poor decision because it should always pro...
See AnswerQ: An increase in which of the following determinants of demand will have
An increase in which of the following determinants of demand will have an ambiguous (uncertain) effect on price? a) Taste b) Price of a complement c) Income d) Price of a substitute
See AnswerQ: The approval process for new drugs, if governed by economic thinking
The approval process for new drugs, if governed by economic thinking, should set stringency standards so that the __________ equals the ___________. a) total cost; total benefit b) average cost; ave...
See AnswerQ: The Medicare Trust Fund is necessary because a) current expenses
The Medicare Trust Fund is necessary because a) current expenses are greater than current revenues. b) current expenses are less than current revenues. c) future expenses will be greater than futur...
See AnswerQ: Medical care inflation is likely to be easily overstated (if you
Medical care inflation is likely to be easily overstated (if you look simply at the increase in the cost of a hospital stay) because that calculation ignores a) the original costs. b) the new costs....
See AnswerQ: If policy makers were to attempt to set a tax equal to
If policy makers were to attempt to set a tax equal to the external costs of alcohol, one would have to evaluate a) the cost of production. b) the price paid by consumers. c) the value of innocent...
See AnswerQ: The World Trade Organization governs the provisions of a) NAFTA
The World Trade Organization governs the provisions of a) NAFTA. b) GATT. c) CAFTA. d) SHAFTA.
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