According to economist A. P. Lerner, taking income from a wealthy individual and giving it to a poorer individual would
a. decrease the economy's total utility
b. decrease the economy's investment rate
c. eventually increase poverty in the economy
d. lessen the incentive to work
e. increase the economy's total utility
E
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The table above gives the cost of producing T-shirts. The total fixed cost is ________ and the marginal cost of increasing production from 5 to 6 T shirts is ________
A) $20; $6 B) $20; $10 C) $10.40; $8 D) unable to be determined; $8
Hughes and Cain (2011) ask: Who suffered from the tariff in the 19th century? What was their answer?
(a) the government (b) producers of import-competing goods (c) consumers (d) workers in import-competing industries
Why is value created when someone buys something for themselves?
A. Because the cost to produce the good is greater than the price of the good. B. Because the price of the good is greater than the value of the good to the buyer. C. Because the buyer values the good more than it costs the seller to produce. D. Because the buyer values the good as much as it costs the seller to produce.
Which of the following is a feature of a Dutch auction?
A. The auctioneer begins with a very low asking price. B. The winner pays exactly what she bid for the item. C. Several bidders will announce their valuations. D. Bidders simultaneously write their valuations on paper and submit them independently.