The above figure shows supply and demand curves for milk. In an effort to help farms, the government passes a law that establishes a $3 per gallon price support, but allows farmers to decide how much milk to produce
The government then provides a deficiency payment to guarantee that the farmers receive $3 per gallon. The required deficiency payment equals A) b + c + f + g + h + i + j.
B) b + c + f + g + h + i.
C) f + g.
D) b + c.
A
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The cost that society incurs in cleaning up pollution caused by a firm's production is the same as the __________ associated with that production
a. negative externality b. positive externality c. private marginal cost d. intersection of the demand and supply curves e. price
Other things the same, a country that increases its savings rate will have
a. higher future capital and higher future real GDP per person. b. higher future capital but not higher future real GDP per person. c. higher future real GDP per person but not higher future capital. d. neither higher future capital nor higher future real GDP per person.
A share of stock resembles a consol in all of the following ways except that the:
A. annual dividend the stock pays resembles the coupon on a consol. B. are both residual claims. C. share of stock does not have a maturity date. D. prices of both can be computed using a variation of the net present value formula.
We would expect households to have the most complete information about:
a. their own wage rate. b. products purchased occasionally like a automobile. c. the wage rate available on other jobs. d. all of the above.