When the government provides food stamps to low-income households:
A. the household definitely purchases more food.
B. the household purchases less food.
C. purchases of food may increase or decrease.
D. the household's utility is greater than if they received cash aid.
C. purchases of food may increase or decrease.
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According to the diagram in the above figure, what is the marginal benefit of consuming the 3 millionth gallon of gasoline per month?
A) 5 pounds of shrimp per gallon of gasoline B) 3 pounds of shrimp per gallon of gasoline C) 2 pounds of shrimp per gallon of gasoline D) 1 pound of shrimp per gallon of gasoline
In two-part pricing
A) consumers pay a lump-sum for all the goods purchased. B) the consumer must pay a lump sum if he buys more than a certain number of units of a good. C) a firm charges more for units purchased on the weekend than for those purchased during the week. D) the average price paid per unit is higher with a small number of units purchased than if a large number of units is purchased.
Social Security payments depend on an individual's wages, but the benefits formula is progressive.
Answer the following statement true (T) or false (F)
Dr. Goldfinger decides to invest in companies which he believes can "improve the productivity and efficiency" of health care services. What would Dr. Goldfinger need to do to try to achieve allocative efficiency?
A) invest in companies that produce goods and services based on consumer preferences B) invest in companies that produce goods and services at the lowest possible cost C) invest in companies that fairly distribute their products and services D) invest in companies that produce up to the point where the marginal cost of the last unit produced is zero