In equilibrium, rent seeking eliminates the
A) deadweight loss.
B) economic profit.
C) consumer surplus.
D) demand for the product.
E) opportunity to price discriminate.
B
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Charlie's consumer surplus from the first slice of pizza he buys is greater than the consumer surplus from the second slice because of
A) decreasing marginal benefits. B) increasing marginal benefits. C) decreasing marginal costs. D) increasing marginal cost.
Caseload reduction should be viewed as the sole measure of poverty performance
Indicate whether the statement is true or false
Parvez is trying to decide whether or not he should lend $1,000 to Eli for a year. Eli would pay a fixed nominal interest rate of 8 percent. Parvez expects the inflation rate to be 4 percent for the year. If he does not lend the $1,000 to Eli, Parvez will purchase an indexed savings bond that pays an interest rate of 4 percent, or he will put the money in a (nonindexed) savings account earning 6
percent. Parvez a. will earn 4 percent in real terms if he loans Eli the money, 0 percent in real terms if he buys the bond, and 6 percent in real terms if he puts the money into a savings account b. is better off holding his money as cash c. is indifferent between lending the money to Eli and buying the bond because the real interest rate is the same in either case d. should purchase the bond because it earns the highest real rate of interest e. earns the highest real rate of interest if he puts his $1,000 into a savings account
Which of the following would be considered an unfair labor practice by a union?
a. a strike called by one union in support of another union's strike b. calling for a strike c. demanding a wage rate increase when the firm is in financial trouble d. boycotting the employer's goods e. demanding that the employer bargain in good faith