In economic models of the public sector, the median voter model presents an extreme view of the way that the public sector allocates resources
a. True b. False
a
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Graphically, consumer surplus is the area below the demand curve and above the price
a. True b. False Indicate whether the statement is true or false
Give an example that demonstrates a change of price elasticity along a linear demand curve. Avoid using examples given in the text.
What will be an ideal response?
The national debt is unlikely to cause national bankruptcy because the:
A. national debt can be refinanced by issuing new bonds. B. interest on the public debt equals GDP. C. national debt cannot be shifted to future generations for repayment. D. federal government cannot refinance the outstanding national debt.
If the price a firm charges in a perfectly competitive industry is less than average total cost:
A. the firm is earning positive economic profit. B. the firm is earning zero economic profit. C. the firm is earning negative economic profit. D. it is not possible to determine anything about profits.