A consumer allocates all income between two products, A and B. If, on an indifference map, the equilibrium position shifts onto a higher indifference curve, then:
A. The consumer must be purchasing more of both products
B. The relative prices of A and B must have changed
C. The prices of A and B must have increased
D. Total utility must have increased
D. Total utility must have increased
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Suppose a tax on sellers has been imposed in the graph shown. The amount of deadweight loss generated by this tax is:
A. $0.
B. $80.
C. $160.
D. $129.50
The government’s fiscal policy is its plan to influence aggregate demand by changing
A. the money supply. B. minimum wage levels. C. sales taxes. D. taxation and spending.
Gold mining and the supply of gold depends not only on its price but also on the market rate of interest
a. True b. False Indicate whether the statement is true or false
If the elasticity of demand is much greater than the elasticity of supply, a subsidy awarded to demanders will
a. benefit the demanders more than the suppliers b. benefit the suppliers more than the demanders c. the benefit of the subsidy will be equally shared between the demanders and the suppliers d. allow the demanders to be the only ones who will benefit e. Without more information as to the amount of the subsidy, who will benefit more can not be determined