Exhibit 14-2 Cigarette smoking dataJack enjoys smoking, while Jill fears that second-hand smoke will shorten her life. The following table shows the value Jack places on each cigarette he smokes, and the value Jill places on her shortened life. Use the table to answer the following question(s):
Quantityof cigarettes
Total value to Jackof cigarettes
Days of life lost
Total value to Jillof days lost
1
$ 50
1
$ 30
2
90
2
60
3
120
3
90
4
140
4
120
5
150
5
150
As shown in Exhibit 14-2, what is the socially efficient number of cigarettes?
A. 0.
B. 1.
C. 3.
D. 5.
Answer: C
Economics
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Refer to the above figure. Which of the graphs is consistent with the Keynesian short-run aggregate supply curve?
A) Graph A B) Graph B C) Graph C D) Graph D
Economics
With free entry:
A. there is a known and limited number of potential suppliers that can produce a good in the long run. B. there is an unlimited number of firms that can produce a good in the long run. C. the long run market supply curve is vertical at the market quantity. D. the long run market demand curve is horizontal at the market price.
Economics