Welfare economics is the study of how the allocation of resources affects economic well-being.
a. the allocation of resources affects economic well-being.
b. price controls work
c. the government helps poor people.
d. to produce greater equality.
a
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In 2012, direct government purchases equaled ________ percent of federal outlays
A) 42 B) 71 C) 26 D) 55
Figure 4-9
Refer to . The market for gasoline was initially in equilibrium at point b and a $.40 excise tax is illustrated. How much revenue would the $.40 gasoline tax raise?
a.
$18 million
b.
$36 million
c.
$72 million
d.
$100 million
If the government's provision of a subsidy is too large to counteract the entire effect of a positive externality, the:
A. total surplus will be maximized. B. quantity consumed will become even lower. C. quantity consumed will become too high. D. None of these statements is true.
Suppose an import-competing firm is imperfectly competitive. Replacement of an export tariff with an import quota that yields the same level of imports will ________ market price, ________ producer surplus, ________ consumer surplus, ________
government revenue, and ________ overall domestic national welfare. A) increase; increase; decrease; decrease; decrease B) have no effect on; have no effect on; have no effect on; decrease; decrease C) increase; have no effect on; decrease; decrease; increase D) increase; increase; increase; decrease; have an ambiguous effect on E) decrease; decrease; increase; decrease; increase