A government policy generates $10,000 of benefits to underprivileged youth at a cost of $5,000 to taxpayers. The policy is Pareto efficient.
Answer the following statement true (T) or false (F)
False
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Which of the following is an example of positive statement?
A. The state government should allocate more funds toward education. B. Teachers should be paid higher salaries. C. Individuals with a bachelor's degree earn higher average incomes than those with only a high school diploma. D. The consumption of marijuana is unacceptable and should never be legally allowed in a society.
Average total cost:
A. decreases when output levels are low, then increases as output increases. B. increases when output levels are low, then decreases as output decreases. C. is minimized when it equals average variable cost. D. is maximized when it equals marginal cost.
The consumer surplus lost because monopolists restrict the production of output represents a welfare loss because: a. it is transferred to producers in the form of profit
b. consumers pay a higher price than they would in a more competitive market. c. society is not using its scarce resources in the best way possible. d. of both a. and b., but not c.
Danny Sever owns an avocado grove and sells his avocados to wholesalers. Danny has absolutely no ability to select the price. We know then that he
a. will go out of business because price will end up being lower than his costs b. is a price-maker c. is in a monopolistically competitive industry d. cannot maximize profit e. has a horizontal individual demand curve