If a price floor of $23 were placed in the market in the graph shown, which area represents deadweight loss?
A. C + F
B. C + D + F
C. G
D. B + C + E + F
A. C + F
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A perfectly competitive firm's marginal revenue is
a. slightly higher than it's selling price. b. slightly lower than it's selling price. c. higher than selling price when reducing output, lower than selling price when increasing output. d. exactly equal to selling price.
Economic mobility in the United States is
a. uncommon. Over 50 percent of poor families remain poor for 8 or more years. b. uncommon. Over 75 percent of poor families remain poor for 8 or more years. c. common. Fewer than 3 percent of poor families remain poor for 8 or more years. d. common. Fewer than 1 percent of poor families remain poor for 8 or more years.
You are responsible for purchasing 20 used computers for your company. Red Brand computers cost $1,250 and Green Brand computers cost $1,800. Based on experience, you believe that 60% of Red Brand computers are lemons (low quality) while 20% of Green Brand computers are lemons (low quality). You are willing to pay $1,000 for a known lemon and $2,000 for a known plum. Which brand do you purchase?
A. Red Brand B. Green Brand C. You are indifferent between brands. D. You don't buy either brand.
Critics of an equal distribution of income argue that the effect would be to reduce the incentive to be productive
a. True b. False Indicate whether the statement is true or false