If the intended aim of the price floor set in the graph shown was a net increase in the well-being of producers, then positive analysis would have us consider:
A. the policy to be effective if area C is larger than area E.
B. the policy to be effective if area E + B is larger than C +D + F.
C. the policy to be ineffective if area B is larger than area E.
D. the policy to be ineffective if area E + B is larger than A+C+D+ F.
A. the policy to be effective if area C is larger than area E.
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A reduction in the amount of farmable land inside a nation would cause the:
A. long-run aggregate supply curve to shift to the right. B. long-run aggregate supply curve to shift to the left. C. short-run aggregate supply curve to shift to the right. D. aggregate demand curve to shift to the right.
Studies have shown significant spending changes arise from interest rate changes after
a. a few days. b. a few weeks. c. a few months. d. about a year and a half..
Answer the following statements true (T) or false (F)
1. One basic argument for redistributing income to achieve more equality rests on the idea of maximizing the society's total utility when there is diminishing marginal utility from income. 2. The basic reason why the debate between income equality versus inequality is on-going is because there is a trade off between income equality and economic efficiency. 3. U.S. income statistics indicate that more than one-eighth of the nation lived in poverty in 2011. 4. The poverty rate in the U.S. increased significantly in the period 2007-2010. 5. The incidence of poverty is very high among the elderly (65 years or older).