Why are the poor given little weight in the measure of consumer surplus?
A. The poor don't tend to vote.
B. The poor have little income.
C. The poor don't produce many goods.
D. Many of the poor receive welfare payments.
Answer: B
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As wealth increases in the economy, we would expect to observe
A) bond prices and interest rates both rise. B) bond prices and interest rates both fall. C) bond prices rise and interest rates fall. D) bond prices fall and interest rates rise.
Assume there is a price ceiling imposed on a good which is below the equilibrium price. Which of the following changes would reduce the size of the shortage?
a. an increase in demand b. a decrease in demand c. a decrease in supply d. a lower price ceiling
Is wage discrimination more likely in competitive or monopolistic markets?
An increase in the marginal tax on labor income, increases the supply of labor.
a. true b. false