In the figure above, if the minimum wage rate is $8 per hour, then after taking account of resources lost in job search, the workers' surplus is the area ________ and the firms' surplus is the area ________
A) e; c
B) d; b
C) a; f
D) f; a
E) a + b + c + d + e; f
C
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Which of the following policies would be expected to increase private saving?
A. Increasing the tax rate on capital gains B. Replacing the income tax with a consumption tax C. Reducing the size of down payments needed to buy a house D. Providing more generous Social Security retirement benefits
Briefly describe the potential negative effects of increasing government purchases rather than decreasing taxes during a recession.
What will be an ideal response?
Which statement is true?
A. In both the 19th century and the since the 1980s we borrowed from foreigners to finance both capital expansion and consumption. B. In neither the 19th century nor since the 1980s we borrowed from foreigners to finance both capital expansion and consumption. C. In the 19th century we borrowed from foreigners to finance capital expansion and since the 1980s we borrowed to finance consumption. D. In the 19th century, we borrowed from foreigners to finance consumption and since the 1980s we borrowed to finance capital expansion.
A subsidy to buyers has been placed on the market in the graph shown. What is the amount of the subsidy per unit of this good?
A. $22 B. $6 C. $16 D. $10