The typical by-product of policies that create more equality by making the rich worse off is _____
a. an increase in the economic multiplier
b. a decline in conspicuous consumption
c. and increase in social stratification
d. a lowering of economic productivity
d
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A relative price is
A) the number of dollars that must be given up in exchange for the good. B) also called the money price. C) not an opportunity cost. D) the ratio of one price to another price.
What is meant by the present bias?
What will be an ideal response?
Refer to Figure 9.7. Because of this policy, total producer surplus including funds received from the government will be at least
A) $10,000. B) $40,000. C) $80,000. D) $100,000. E) $160,000.
Suppose we plot the total revenue curve with quantity on the horizontal axis and revenue on the vertical axis (as in Figure 8.1 in the book). Under price-taking behavior, the total revenue curve should be:
A) an inverted U-shaped curve (first increasing and then decreasing). B) a U-shaped curve (first decreasing and then increasing). C) a horizontal line with vertical axis intercept equal to the market price. D) a straight line from the origin with slope equal to the market price.