In a competitive market when there is no deadweight loss,
A) consumer surplus is minimized.
B) producer surplus is minimized.
C) consumer surplus plus producer surplus is maximized.
D) consumer surplus plus producer surplus is minimized.
C
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The World Bank was formed in
A) 1930. B) 1960. C) 1945. D) 1918.
Which of the following is an example of a normative economic statement?
a. The inflation rate in the United States decreased 4 percent because the price of energy fell. b. The economy grew at an annual rate of 5 percent during the first quarter of this year. c. If two automobile companies merge, the price of automobiles will rise. d. An increase in international trade benefits some workers but hurts others. e. The minimum wage should be increased so that low-income workers can afford to keep up with the cost of living.
Incentives matter
A) to all human beings regardless of environment. B) only in a free market system. C) only in the private sector. D) only when people are greedy and selfish.
Hu earns $120,000 per year. He is charged a 20% tax on the first $80,000 he earns. He is charged a 30% tax for any income he earns between $80,000 and $200,000. Approximately what is his average tax rate?
a. 10% b. 23% c. 40% d. 54%