If a price floor of $23 were placed in the market in the graph shown, which area represents deadweight loss?
A. B + C + E + F
B. C + D + F
C. G
D. C + F
Answer: D
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The figure below shows the supply and demand curves for oranges in Smallville.
At the price of $4 per pound, sellers offer ________ pounds of oranges per day, and buyers want to purchase ________ pounds of oranges a day.
A. 10; 20 B. 10; 30 C. 20; 20 D. 30; 10
The tax rates embodied in the federal personal income tax are such that:
A. a rising absolute amount, but a declining proportion, of income is paid in taxes. B. the marginal and average tax rates are equal, making the tax progressive. C. the average tax rate rises more rapidly than does the marginal tax rate. D. the marginal tax rate is higher than the average tax rate, causing the average tax rate to rise.
Suppose there is a Fed purchase of bonds and simultaneous tax cut. We know with certainty that this combination of policies must cause
A) an increase in the interest rate (i). B) a reduction in i. C) an increase in output (Y). D) a reduction in Y.
A movement along the supply curve is caused by a change in a good's own price.
Answer the following statement true (T) or false (F)