Which of the following government activities is motivated by a concern about equality . ( )
A. regulating cable TV prices
B. providing some poor people with vouchers that can be used to buy food
C. prohibiting smoking in public places
D. breaking up Standard Oil (which once owned 90 percent of all oil refineries) into several smaller companies
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Which of the following is a positive, rather than a normative, statement? ( )
A. Law X will reduce national income.
B. Law X is a good piece of legislation.
Congress ought to pass law X.
D. The president should veto law X.
Producing a quantity larger than the equilibrium of supply and demand is inefficient because the marginal buyer’s willingness to pay is ( )
A. negative.
B. zero.
C. positive but less than the marginal seller’s cost.
D. positive and greater than the marginal seller’s cost.
If production costs on the price and quantity of flat-screen TVs fall, ( )
A. Producer surplus increases
B. Producer surplus increases
Consumer surplus increases
D. Consumer surplus decreases
Which goods will a nation typically import? ( )
A. those goods in which the nation has an absolute advantage
B. those goods in which the nation has a comparative advantage
C. those goods in which other nations have an absolute advantage
D. those goods in which other nations have a comparative advantage
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