The so-called "death tax" might
A) aim to alter endowments so as to attain an inefficient outcome.
B) aim to alter endowments consistent with the First Theorem of Welfare Economics.
C) aim to alter endowments consistent with the Second Theorem of Welfare Economics.
D) aim to alter prices consistent with the First Theorem of Welfare Economics.
C
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Macroeconomics differs from microeconomics in that macroeconomics focuses on:
A. individual choices and group behavior in individual markets. B. production in specific markets. C. the performance of national economies and ways to improve that performance. D. prices in specific markets.
An increase in the real interest rate will
A) most likely lower the reward to savings. B) most likely lower the cost of borrowing. C) most likely lower consumers' purchases of durable goods. D) cause consumers to spend more and save less.
The market for used cars is shown in the above figure. Buyers cannot tell whether any given car is a lemon. Forty percent (40%) of all cars are lemons. Which of the following statements is true?
A) All of the cars will be sold. B) No cars will be sold. C) Only lemons will be sold. D) Ten percent of the used cars sold will be lemons.
Most people who earn the minimum wage are poor
Indicate whether the statement is true or false