What is a marginal benefit?
What will be an ideal response?
A marginal benefit is the additional benefit resulting from a small increase in the production of a good.
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U.S. census data suggests that
A) income inequality has been increasing since 1980. B) income inequality has been decreasing since 1980. C) income inequality was nonexistent in the 1990s. D) the percentage of families living below the poverty line has surged since the 1980s.
What is not one of the reasons why farmers prefer price supports more than direct income supplements?
a. Direct income supplements tend to remain fixed over time. b. Direct income supplements tend to provide lower benefits. c. Direct income supplements tend to go predominantly to poor farmers. d. Direct income supplements tend to be viewed as demeaning.
What is the shape of the AS in the short run and the long run?
a. AS is relatively flat in both the short and long run. b. AS is relatively flat in the short run, but steeper in the long run. c. AS is relatively steep in both the short and long run. d. AS is relatively steep in the short run, but flatter in the long run.
Refer to the graph shown. If the government's goal is to eliminate the welfare costs of monopoly, it will:
A. establish a price floor at P1. B. establish a price ceiling at P3. C. not attempt to control price. D. establish a price ceiling at P2.