Refer to Figure 4-10. Suppose that instead of a price ceiling, the government imposed a price floor of R1. What area represents the deadweight loss after the imposition of the price floor?
A) J + H B) C + E + J + H C) C + E D) G + H
C
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Father says, "Earn a B-average on your next report card and I'll help you buy a car." An economist would say that this parent is providing his child a(n)
A) study disincentive. B) reason to slack off and not worry about her grades. C) bribe. D) incentive.
The government corrects for externalities in all of the following ways EXCEPT
A) taxes. B) regulation. C) lobbying. D) subsidies.
An individual is currently 30 years old, wants to work until the age of 65 and plans on dying at the age of 85. How much will the individual need to have saved by the time he or she is 65 if he or she plans on spending $40,000 per year while retired? You can assume the individual can earn an interest rate of 5.0% and the $40,000 is in addition to any Social Security that may be received.
What will be an ideal response?
The long-run industry supply curve will be upward-sloping if:
A. output prices are fixed no matter what the level of output. B. there are no economies or diseconomies of scale. C. input prices are fixed no matter what the level of output. D. input prices increase with the level of output.