With reference to the graph above, if the intended aim of the price ceiling set at $6 was a net increase in the well-being of consumers, then positive analysis would consider:
A. whether the producer surplus lost to deadweight loss is larger than the producer surplus gained from a higher price.
B. whether the surplus transferred from consumers to producers is larger than the consumer surplus lost to deadweight loss.
C. whether the producer surplus lost due to lower prices is larger than the producer surplus lost due to fewer transactions taking place.
D. whether the surplus transferred from producers to consumers is larger than the consumer surplus lost to deadweight loss.
Answer: D
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Refer to Figure 15-9. In the figure above suppose the economy is initially at point A. The movement of the economy to point B as shown in the graph illustrates the effect of which of the following policy actions by the Federal Reserve?
A) an increase in the required reserve ratio B) a decrease in income taxes C) an open market sale of Treasury bills D) an open market purchase of Treasury bills
Which of the following describes actual trends in the U.S. labor force participation rate?
A) The labor force participation rate of adult men has risen since 1950. B) The labor force participation rate of adult women has risen since 1950. C) The labor force participation rate of adult men not in school, but too young to retire has risen since 1950. D) The labor force participation rate of adult women has fallen since 1950. E) The labor force participation rate of all adults has fallen since 1950.
Suppose a country has a real growth rate of 3%. Government spending is 75 billion units of currency and its tax revenues are 60 billion units of currency. The current national debt is 300 billion units of currency. At what inflation rate will its debt-to-income ratio remain unchanged?
It is possible for a monopolist to earn an economic loss.
Answer the following statement true (T) or false (F)