According to utilitarian justice, the redistribution of income from the rich to the poor causes
A. the marginal utility of both the rich and the poor to decrease.
B. an increase in total utility because of the law of decreasing marginal utility.
C. the rich to sacrifice a lot and the poor to gain a little.
D. the marginal utility of both the rich and the poor to increase.
Answer: B
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The long-run average cost curve indicates
a. the lowest average costs of production at each level of output. b. the lowest average costs of production for each plant size. c. the lowest point along each of the firm’s short-run average total cost curves. d. the lowest point along each of the firm’s short-run marginal cost curves.
Consider monopoly, monopolistic competition, and perfect competition. In which of these three market structures does a profit-maximizing firm experience zero economic profit?
a. perfect competition only b. perfect competition and monopolistic competition only c. perfect competition, monopolistic competition, and monopoly d. The answer cannot be determined without knowing whether the market is in the long run or short run.
During the financial crisis it was proposed that firms be provided with a tax credit for investment projects. Such a tax credit would
a. raise both the interest rate and the real exchange rate. b. raise the interest rate and reduce the real exchange rate. c. reduce the interest rate and raise the real exchange rate. d. reduce both the interest rate and the real exchange rate.
The _____________ program of President Lyndon Johnson was designed to lift people out of poverty.
Fill in the blank(s) with the appropriate word(s).