The deadweight loss equals the consumer surplus minus the producer surplus resulting from a non-equilibrium price
a. True
b. False
Indicate whether the statement is true or false
False
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There is only one firm in a small island country. The firm produced 1,000 units of Good X during a particular year out of which it could sell 900. If each unit of the good sells for $500, what is the gross domestic product of the country?
A) $150,000 B) $450,000 C) $40,000 D) $500,000
When the real exchange rate rises
A) imports measured in terms of domestic output will rise. B) imports measured in terms of domestic output will fall. C) imports measured in terms of domestic output will never be affected. D) imports measured in terms of domestic output may rise or fall. E) imports measured in terms of foreign output will rise.
Consider a world with two income earners and an income tax. Individual A earns $25,000 and pays $1,000 in taxes. Individual B earns $100,000 and pays $3,000 in taxes. Which of the following best classifies the income tax system in this world?
a. proportional b. progressive c. regressive d. consumption
We worry that false negatives occur too often relative to false positives due to
a. Most hypotheses being false b. It being appropriate to set a high standard for acceptance of a hypothesis c. Managers having an incentive to make a false negative conclusion because they are harder for superiors to observe d. They are not too common