In an optimal two-part tariff pricing schedule, consumer surplus is zero
Indicate whether the statement is true or false
TRUE
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The government collects tax revenues of $100 million and has $105 million in outlays. The budget balance is a
A) deficit of $5 million. B) surplus of $5 million. C) surplus of $100 million and a deficit of $105 million. D) deficit of $105 million. E) surplus of $105 million.
Activists believe ________
A) the self-correcting mechanism in the economy is very slow B) in the adoption of policies to eliminate excessive unemployment C) doing nothing will leave too many people out of work for too long D) all of the above E) none of the above
Which of the following are qualifications of the Coase Theorem?
a. technical transaction costs must remain low and be unaffected if liability assignment is reversed b. both parties must operate in a purely competitive market c. one party quickly makes an offer the other is just willing to accept only when the information regarding payoffs is complete, certain and known to both parties d. all of the above are correct e. only a and c
The number of hours that a worker is willing to work is determined by the trade-off between the increasing
A. Total utility of leisure and the decreasing total utility of income. B. Value of leisure time and the decreasing marginal utility of income. C. Marginal utility of both income and leisure. D. Total utility of income and the decreasing marginal utility of leisure.