When the government sets a price floor which is above the equilibrium price
A) a surplus will develop.
B) a shortage will develop.
C) the equilibrium price will be maintained.
D) a price ceiling will follow.
Answer: A
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Personal income less personal taxes is called:
A) personal disposable income. B) national income. C) compensation of employees. D) savings.
The conclusion of the median voter model is that_____
a. private sector demands of the median voter influences their demand for public goods b. the median voter is omniscient c. public sector demand will be the demand of the median voter d. decision-making costs will be high if the median voter is rationally ignorant
Advocates of a progressive income tax use arguments EXCEPT for which of the following?
A) A progressive tax system taxes according to ability to pay. B) A progressive tax system taxes according to benefits received. C) A progressive tax system helps redistribute income away from the rich and towards the poor. D) A progressive tax system maximizes government revenues.
A potential implication of OSHA regulation is that
A. the most risk-averse workers begin working the riskiest jobs. B. the hedonic wage function may no longer exists at the safest levels. C. average wages increase. D. the hedonic wage function may no longer exists at the riskiest levels. E. for the same amount of output produced, total production costs will be less.