One Reads the Following in a Newspaper: "Today the President

question 223

Multiple Choice

One reads the following in a newspaper: "Today the president and Congress agreed to impose new restrictive quotas on Japanese cars coming into the country." As a result,an economist would predict that the

• A) supply of cars in the country will remain the same and the (average)price of cars will fall.
• B) supply of cars in the country will fall and the (average)price of cars will rise.
• C) supply of cars in the country will rise and the (average)price of cars will fall.
• D) demand for cars in the country will fall and the (average)price of cars will rise.
• E) demand for cars in the country will rise and the (average)price of cars will rise.

Comprehend the concept of socially optimal use of common resources and the factors leading to its deviation.

Recognize different economic tools and policies (e.g., Pigouvian taxes, tradable permits, property rights) to address externalities and achieve efficient resource allocation.

Differentiate between various types of goods (public goods, artificially scarce goods, common resources) and understand the source of market failure associated with each.

Identify the implications of property rights in managing common resources and preventing their overuse.

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Definitions:

Infidelity And Alcoholism

The co-occurrence of unfaithfulness in a romantic relationship and excessive alcohol use, often leading to complex personal and social challenges.

Dementia

A category of brain diseases that cause a long term and often gradual decrease in the ability to think and remember, significantly affecting daily functioning.

Charged With Negligence

Accused of failing to provide the necessary care or action required in a specific situation, resulting in harm or risk.

Reasonable Care

The standard of care expected to be exercised by a reasonable person under similar circumstances to prevent harm or injury.