Consumer surplus is a good measure of economic welfare if policymakers want to
a. maximize total benefit.
b. minimize deadweight loss.
c. respect the preferences of sellers.
d. respect the preferences of buyers.
d
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The major determinant of an individual's income is
a. whether or not his family is wealthy. b. his personality-if the coworkers and the boss like him. c. how productive he is combined with demand for what he produces. d. if he earns a salary or if he is paid by the hour.
All of the following would show a more equal distribution than the distribution of money income EXCEPT
A) total income. B) after-tax income. C) wealth. D) lifetime earnings.
The federal budget was in deficit from 1931 to 1939, except in the year 1937. Given this fact, how do you explain E. Cary Brown's statement, "Fiscal policy, then, seems to have been an unsuccessful recovery device in the 'thirties-not because it did not
work, but because it was not tried." What will be an ideal response?
A major disadvantage of a corporation is
a. its weakness at raising funds. b. its inability to limit the financial liability of the owners. c. the double taxation of its profits. d. its lack of continuity in the event of a stockholder’s death.