If price support policy increases producer surplus more than reducing consumer surplus, then
A) the policy leads to a Pareto-superior allocation.
B) the policy leads to an increase in social welfare.
C) the policy improves the efficiency of society.
D) None of above.
D
You might also like to view...
The rule for the optimal use of any input says that
A. when MRP is less than price, it pays to expand resource use. B. when MRP is greater than price, it pays to expand resource use. C. when MRP equals price, resource use should be cut back. D. resources should be used only if MRP exceeds price.
You are a collector of antique coins. You purchase a silver dollar minted in 1898 . Is this sale included in GDP for the current year?
a. Yes, provided the coin is in mint condition. b. No, it is not. c. No, unless the coin has been in circulation. d. Yes, it is. e. Only if it is part of the current money supply.
Refer to the table at right. If the price of the product is $1.50, and the marginal factor cost of an additional unit of an input is $135, how many units of labor should be hired?
A. 14 B. 11 C. 12 D. 13
A dozen eggs cost $2 in the U.S. and 12 pesos in Argentina. If the real exchange rate is 5/6, what is the nominal exchange rate? Show your work