Which of the following consumers would most likely be helped by a price ceiling?
a. Because of his low income, Ben can afford to rent an apartment at only $800 per month.
b. Because of her significant raise, Juanita can afford a $30,000 car.
c. Because of his sizable inheritance, Jacques can add an expensive addition to his home.
d. Because of her steady income, Roberta can rent a vacation home in Hawaii.
a. Because of his low income, Ben can afford to rent an apartment at only $800 per month.
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The market demand function for wheat is Qd = 10 - 2P and the market supply function is Qs = 4P - 2, both measured in billions of bushels per year. Suppose the government wants to increase the price of wheat to $3/bushel and they impose a voluntary production reduction program to achieve their goal. What is the size of the producer surplus?
A. $8 billion B. $4.5 billion C. $12.5 billion D. $6.5 billion
Compared to the Gini coefficient for income distribution, the value of the Gini coefficient for the distribution of wealth would be
a. higher. b. lower. c. zero. d. nearly identical.
The approach to calculating GDP that measures the contribution of each firm to GDP is referred to as the
a. expenditures approach to measuring GDP b. factor payments approach to measuring GDP c. value added approach to measuring GDP d. productivity approach to measuring GDP e. output approach to measuring GDP
Which is an example of a negative externality?
A. The higher price you pay when you buy a heavily advertised product. B. An increase in the value of land you own when a nearby development is completed. C. The costs paid by a company to build an automated factory. D. Decreased property values in a neighborhood where several houses are burglarized.