With reference to the graph above, if the intended aim of the price ceiling set at $6 was a net increase in the well-being of consumers:
A. then the policy was ineffective since consumers gained in surplus overall.
B. then the policy was effective since consumers lost surplus overall.
C. then the policy was ineffective since consumers lost surplus overall.
D. then the policy was effective since consumers gained in surplus overall.
Answer: D
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Suppose Motorland's government imposes a tax of $1.50 per gallon of gasoline sold. With the tax, when the market is in equilibrium, the deadweight loss is
A) zero. B) $37,500 per month. C) $150,000 per month. D) $75,000 per month.
Refer to Figure 2-8. What is the opportunity cost of 80 dozen orchids?
A) 0 roses B) 2.5 dozen roses C) 40 dozen roses D) 200 dozen roses
How is net present value used to decide whether a project should be undertaken or not?
What will be an ideal response?
Mattress savings are: a. used to buy bonds and shares
b. kept in a current account. c. kept in a savings account. d. kept on hand and not loaned out or invested.