Because government bodies have the power to impose limits on how much of a resource is consumed:
A. it can be efficiency enhancing in markets for common resources.
B. it will always cause deadweight loss.
C. they decide what is the "right" amount for the public to consume.
D. they will often correct a market before testing the effectiveness of social norms to correct the problem.
A. it can be efficiency enhancing in markets for common resources.
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According to the supply-side economists, a cut in the marginal income tax rate would cause
a. labor supply to rise, output to rise, and the price level to fall. b. labor supply to rise, the price level to rise, and output to fall. c. labor supply to fall, the price level to rise, with output unchanged. d. labor supply to rise, the price level to fall, with output unchanged.
A consumer's budget line for food (F) and shelter (S) is represented as F = 250 - 5S. If the price of shelter increases by 2 and consumption of shelter remains constant at 20, how will consumption of food change?
A) decrease by 10 B) decrease by 20 C) decrease by 40 D) decrease by 60
Assume the market in the graph shown with demand D and supply S1 is in equilibrium at a quantity of 5 units. Total surplus is:
A. $5.
B. $15.
C. $12.50.
D. $60.
Which of the following actions gave Ralph an indirect ownership share in a corporation?
a. He holds stock in a technology firm. b. He bought products from a large department store. c. He invested for retirement in a mutual fund. d. He bought gift certificates from a restaurant chain.