Any attempt to capture a consumer surplus, a producer surplus, or an economic profit is called
A) profit-maximizing.
B) rent-seeking.
C) price discriminating.
D) efficiency gain.
B
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GDP measures how many goods and services are produced but says nothing about whether the quality of life has improved
a. True b. False Indicate whether the statement is true or false
To fully understand how taxes affect economic well-being, we must compare the
a. consumer surplus to the producer surplus. b. price paid by buyers to the price received by sellers. c. reduced welfare of buyers and sellers to the revenue raised by the government. d. consumer surplus to the deadweight loss.
Recall the Application about the effects of increasing state level Earned Income Tax Credit (EITC) on child health in the United States to answer the following question(s).Recall the Application. According to the study cited in the Application, does EITC improve income distribution?
A. Yes, aside from increasing income for low-income households, it improves the health levels of the worker and their families. B. Yes, EITC encourages workers to sop working and get an education in the health industry. C. No, only the politicians get rich because of EITC. D. No, the level of spending on EITC is so low it has no measurable effects on incomes of the poor.
An increase in the price of electricity, ceteris paribus, indicates that
A. inflation is increasing. B. electricity is relatively more scarce than it was before. C. the purchasing power of money is decreasing. D. the purchasing power of money is increasing.