In the above figure, if a subsidy is granted to producers that generates an efficient allocation of resources, then producers will receive a total amount (price plus subsidy) equal to
A) $20 per unit.
B) $15 per unit.
C) $10 per unit.
D) $5 per unit.
B
You might also like to view...
A student has two options: she can either surf the web, or work part-time. Working part-time pays her $20 per hour. What is the student's opportunity cost of surfing the web for 5 hours?
A) $4 B) $20 C) $50 D) $100
Former Alabama Governor George Wallace ran for president several times, once as a third-party candidate in 1968. Wallace claimed there was "not a dime's worth of difference" between the Democratic and Republican parties during one of his campaig
How does Wallace's comment relate to the median voter theorem?
Suppose residents of Toadhop live on the Quabache River, a river prone to flooding. Suppose there are 1000 (type A) people who value flood control more than the 1000 (type B) people. Type A Demand QD = 100 ? P Type B Demand QD = 50 ? P Where Q measures the quality of flood control. If the price of a unit of flood control is $100,000 and the citizens of Toadhop gather for a townhall meeting to
find the socially optimal level of flood control, and they are successful, they will pick Q equal to a. 0 b. 10 c. 25 d. 70
Assume the M2 multiplier is 3 and the reserve ratio is 10%. If the central bank buys $100 million of government securities from banks, the banking system's reserves will:
a. Rise by $10 million. b. Rise by $100 million. c. Fall by $100 million. d. Fall by $10 million. e. Not change.