Goods are distributed efficiently if everyone gets an equal share of each good
a. True
b. False
Indicate whether the statement is true or false
False
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Governments can increase the consumption of a product that creates positive externalities by
A) taxing the production and consumption of the product. B) subsidizing the production of the product so that the supply is increased and market price is reduced. C) convincing everyone to consume the product. D) assigning property rights to the producers of the product.
If an economy can produce a maximum of 100 units of good X and the opportunity cost of 1X is always 5Y, then what is the maximum number of units of good Y the economy can produce?
A) 250 B) 100 C) 20 D) 500 E) none of the above
How would a new excise tax affect the supply curve?
(A) It would probably cause the supply curve to shift to the left. (B) It would probably cause the supply curve to shift to the right. (C) The effect cannot be determined without knowing the amount of the tax. (D) It would not change the supply curve, because it would only move price.
In recent years, total compensation to workers has risen faster than the take-home pay of average workers. This implies that:
A. Something is wrong with the statistics on either compensation or take-home pay B. Fringe benefits have become a larger share of total worker compensation C. Direct payments have become a larger share of total worker compensation D. Workers' pay has been declining slightly in recent years