Which of the following is a positive economic statement?
A) The standard of living in the United States should be higher.
B) The U.S. government should not have bailed out U.S. auto manufacturers.
C) If the price of iPhones falls, a larger quantity of iPhones will be purchased.
D) The government should revamp the health care system.
C
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To maximize welfare in a competitive market that has a negative externality in production, government should tax a pollution-generating good at a specific tax equal to the marginal cost of producing the good
Indicate whether the statement is true or false
The price charged by a monopolist is the point on the demand curve that corresponds to the output where marginal revenue equals marginal cost
a. True b. False Indicate whether the statement is true or false
In contrast to other antipoverty programs, a negative income tax
a. provides incentives to work b. provides more assistance to children c. assists the unemployed d. provides direct in-kind transfers to the most needed e. recognizes the existence of a culture of poverty
Which of the following examples illustrates a regressive income tax?
a. I earn $500 and pay $50 in taxes; you earn $1,000 and pay $90 in taxes. b. I earn $500 and pay $50 in taxes; you earn $1,000 and pay $100 in taxes. c. I earn $500 and pay $50 in taxes; you earn $1,000 and pay $110 in taxes. d. I earn $500 and pay $50 in taxes; you earn $1,000 and pay $125 in taxes.