In the above figure, the total dollar amount of the Medicare subsidies provided by the government is equal to
A. the difference between P0 and Pd multiplied by Qd.
B. the difference between Ps and Pd multiplied by Q0.
C. the difference between Ps and P0 multiplied by QM.
D. the difference between Ps and Pd multiplied by QM.
Answer: D
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Kevin owns a personal training gymnasium in Orlando. The above figure shows the demand and cost curves for his firm, which competes in a monopolistically competitive market
If Kevin trains 5 clients per day, he will ________ his profit and will ________. A) maximize; earn normal profit B) not maximize; earn a normal profit anyway C) maximize; earn an economic profit D) not maximize; earn an economic profit anyway E) not maximize; incur an economic loss
Economists ordinarily favor setting price equal to marginal cost when this option is feasible.
Answer the following statement true (T) or false (F)
Information exchanges operated by sellers are illegal
Indicate whether the statement is true or false
Which of the following is not one of the side effects economists have found in programs to redistribute income?
A. The incentive effects of distributing money may cause people to make themselves look needier than they really are. B. The incentive effects of a tax may result in a switch from labor to leisure. C. The effects of taxes may include attempts to avoid or evade taxes, leading to a decrease in measured income. D. The incentive effects of distributing money may cause people to avoid government assistance programs.