Which of the following would cause the level of income to change by the greatest amount, ceteris paribus?
A. A reduction in personal income taxes of $10 billion.
B. An increase in Social Security payments of $10 billion.
C. An increase in defense spending of $10 billion.
D. All of the other choices have equal impacts on the level of income.
Answer: C
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In Barylia, Greenaqua Corp . is the sole controller of a resource required for the production of bottled drinking water. Therefore, Greenaqua Corp . enjoys:
A) legal market power. B) natural market power. C) regulated market power. D) restricted market power.
Because a monopsony must raise the wage on all labor hired in order to hire more labor,
A) the MCL curve is horizontal at the market wage. B) the MCL curve is negatively sloped. C) MCL = W. D) MCL > W.
The marginal revenue curve coincides with the demand curve of a firm that engages in perfect price discrimination
a. True b. False
Figure 6.5 illustrates the market for sugar. With free trade, producer surplus in the market would be shown as area:
A. ABC. B. AEF. C. GEQ1. D. FEG.