In the market in Figure 15.1:
A. social benefits are greater than private benefits.
B. the quantity provided by the market is inefficient.
C. the market produces less than the social optimum quantity.
D. All of these
Answer: D
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The _________ bowed inward the Lorenz curve is, the __________ inequality exists.
A. less; more B. more; less C. more; more D. None of these is true.
Suppose that a professional photographer takes a prize-winning digital photo. She can sell a 5"x7" color print of the photo for $10 . She can also sell the digital file for $20 . There are 500 people willing to buy the color print and 2,000 people willing to buy the digital file. Assume the costs to the photographer are zero and that the people who purchase the digital file cannot resell the file
itself or any prints made from it. What should she do in order to maximize her profits? a. earn $5,000 by selling only the color prints b. earn $40,000 by selling only the digital files c. earn $45,000 by selling both the color prints and the digital files at their respective prices d. We do not have enough information with which to answer this question.
When applying the marginal principle, you should pick the level at which the activity's marginal benefit equals its marginal cost.
Answer the following statement true (T) or false (F)
Refer to the below graph which shows the supply and demand for unionized manufacturing workers. The initial equilibrium point is point 1. The wages paid in comparable nonunion occupations increase significantly, while at the same time the price of manufactured goods increases. Which point would represent the new equilibrium?
A. 2
B. 3
C. 4
D. 5