Suppose that one could determine the amount of income that is pure economic rent. If a law were passed which taxed 50 percent of that rent, what would happen to the amount of work that people perform?
a. It would increase as people seek higher income.
b. It would be unchanged.
c. It would decrease as people suffer a loss of income.
d. It would increase for some and decrease for others.
b
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The equilibrium price under an import quota is below the price that occurs with an import ban
Indicate whether the statement is true or false
Refer to Figure 4-11. What is the value of consumer surplus after the imposition of the price floor?
A) $1,500 B) $2,700 C) 4,500 D) $5,700
Suppose in a given year, GDP was $7,242 billion and the GDP chain price index for that year is 117.5 . Real GDP is:
a. $5,488 billion. b. $6,163 billion. c. $6,740 billion. d. $7,789 billion.
A monopolist can choose a price & quantity combination that is above the demand schedule
a. True. b. False.