A criticism of market-oriented schemes says that consumers may not be well informed.
A. True
B. False
C. Uncertain
A. True
You might also like to view...
In practice, turning horizontal and vertical equity into tax law
A. hasn’t been tried. B. has been fairly easy. C. is resisted by nearly all taxpayers. D. has been extremely difficult.
Mel's utility of wealth is 130 units at $3,000, 160 units at $5,000, and 190 units at $9,000. Starting from zero wealth, he must choose between options A and B
Option A gives him $5,000 for sure. Option B gives him $3,000 with probability 0.4 or $9,000 with probability 0.6. Mel A) will choose A. B) will choose B. C) is indifferent between A and B. D) needs more information to make a choice.
When the inflation rate ends up being lower than expected,
a. everyone benefits because money is cheaper b. everyone benefits because prices do not increase c. lenders of fixed-rate mortgages generally benefit because they will make higher profits than they had calculated d. borrowers with fixed-rate loans will benefit because their purchasing power will not decline as much e. no one benefits because everyone made financial calculations based on the projected interest rate
Assume that the demand schedule for product C is downsloping. If the price of C falls from $2.00 to $1.75:
a. The demand for C will rise b. A smaller quantity of C will be demanded c. The demand for C will fall d. A larger quantity of C will be demanded