Refer to the below graph of the market for wheat. The government adopts a price support program for wheat, and supports the wheat price at P2. The area Q1ABQ2 represents the:
A. Parity ratio
B. Taxpayers' burden
C. Efficiency gain
D. Efficiency loss
B. Taxpayers' burden
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Sunk costs are irrelevant to economic decisions because
A) they are merely opportunity costs rather than monetary expenditures. B) they cannot affect a firm's net revenue. C) they do not appear on financial statements. D) they represent no opportunity for choice.
Refer to Figure 2-4. A movement from ________ could occur because of additional government restrictions toward allowing immigrant labor
A) X to W B) V to W C) Y to X D) W to X
Which of the following statements best summarizes why bureaucrats tend to be budget maximizers?
a. The larger the budget, the more assured bureaucrats can be of having sufficient resources to complete a task. b. The larger the budget, the more power and prestige the bureaucrat wields. c. The larger the budget, the larger the workload of the bureaucrat. d. The larger the budget, the more work in the public interest the bureaucrat can undertake.
What would happen to a production possibilities frontier (with capital goods measured on the vertical axis and consumption goods on the horizontal axis) if there is an increase in the labor force?
a. The entire frontier would shift outward. b. The upper part of the frontier would shift outward while the lower part would shift inward. c. Nothing, there would be no movement of the frontier. d. The entire frontier would shift inward. e. The lower part of the curve would shift outward while the upper part would shift inward.