An increase in taxes
a. reduces income by more than the total fall in consumption.
b. reduces income by the same amount as the total fall in consumption.
c. reduces income and consumption by the same amount as taxes fall.
d. reduces income by the amount of the initial fall in consumption.
B
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If a coalition D is decisive over a pair of social outcomes (x,y) under a social choice process that satisfies Arrow's axioms, then another coalition C (that differs from D) cannot be decisive over a different pair (a,b) of social outcomes.
Answer the following statement true (T) or false (F)
For direct price discrimination to work
a. The firm must be able to identify the members of the low value group b. The firm must charge a single price to all its customers c. The firm need not worry about any arbitrage since all its customers are charged the same price d. The firm should charge a higher price to those customers with the most elastic demand
Which of the following is not part of a negative income tax?
A. A positive tax rate B. A guaranteed income C. Cash transfers D. Transfers in kind
Refer to Scenario 7.7 below to answer the question(s) that follow. SCENARIO 7.7: A lawn service company has the following production possibilities. With one, two, three, and four workers, the company can mow 4, 9, 12, and 14 lawns per day, respectively. Refer to Scenario 7.7. The average product of labor with four workers is
A. 3. B. 3.5. C. 4. D. 14.