If Florida issues an alligator hunting permit to Jackson, who values an alligator hunt at $2,500, instead of Oliver, who values an alligator hunt at $4,000, the $1,500 difference in values is
A) a deadweight loss.
B) a negative externality.
C) a transactions cost.
D) the social cost of the alligator hunt.
A
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If the price of a soda was 15 cents in 1970, when the CPI was 50, and 50 cents in 2007, when the CPI was 172, then
A) the price of the soda was greater in real value in 1970 than in 2007. B) prices on average have increased 567 percent. C) the price of a soda has increased a greater percentage than the CPI. D) prices on average have increased 244 percent. E) the real price of a soda is the same in 1970 and 2007.
One likely result of a price ceiling is that:
a. a surplus of product would result. b. the price charged in the market would be above the equilibrium price. c. the price charged in the market would be the equilibrium price. d. the available product must be rationed. e. the market supply curve will shift to the right.