Question #1

Indicate whether each of the following statements are True or False 1. In order to increase revenue, all that needs to be done is to raise the price of the product in qu estion 2. Most economists think that rent control is a good idea 3. If a positive externality exists in an industry, the government provides a subsidy to consumers in order to increase output. 4. Regardless of the prevailing price in a given market, buyers would always be willing to pay more than they are actually paying 5. When the government imposes an excise tax on the producers of an industry to reduce output. the tax burden falls completely on the rms of that industry.