According to the Application, people in Morocco bring meteorites picked up in the desert to local dealers, who then sell them to the public through Websites
If the Moroccan government decided to intervene in this market by requiring all meteorites be turned over to the government, and then the government decides who is allowed to purchase the meteorites and at what prices, this best describes an example of
A) a market system. B) a barter economy.
C) comparative advantage. D) central planning.
D
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Mutual interdependence means that: a. each firm faces a perfectly elastic demand curve
b. each firm faces a perfectly inelastic demand curve. c. firms choose price and output simultaneously. d. firms must anticipate the possible reaction of rivals to their own economic behavior.
Suppose Luke values a scoop of Italian gelato at $4 . Leia values a scoop of Italian gelato at $6 . The pre-tax price of a scoop of Italian gelato is $2 . The government imposes a "fat tax" of $3 on each scoop of Italian gelato, and the price rises to $5 . The deadweight loss from the tax is
a. $4, and the deadweight loss comes from both Luke and Leia. b. $4, and the deadweight loss comes only from Luke because he does not buy gelato after the tax. c. $2, and the deadweight loss comes from both Luke and Leia. d. $2, and the deadweight loss comes only from Luke because he does not buy gelato after the tax.