Which of the Ten Principles of Economics does welfare economics explain more fully?
a. The cost of something is what you give up to get it.
b. Markets are usually a good way to organize economic activity.
c. Trade can make everyone better off.
d. A country's standard of living depends on its ability to produce goods and services.
b
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Scarcity is a situation in which resources are unlimited in quantity and can be used in different ways
Indicate whether the statement is true or false
If a good is rationed, we can assume that
a. quantity supplied is greater than quantity demanded b. the price of the good is above its equilibrium level c. a price floor has been imposed on the market d. an excess supply of goods exists e. quantity supplied is less than quantity demanded
Analyzing the behavior of the firm enhances our understanding of
a. what decisions lie behind the market supply curve. b. how consumers allocate their income to purchase scarce resources. c. how financial institutions set interest rates. d. whether resources are allocated fairly.
In the graph for welfare effects of a deficiency payment plan, the output is ______.
a. lowered below the efficient level b. raised above the efficient level c. raised up to the efficient level d. lowered down to the efficient level