While limited in their practical applications, the real value of the Pareto criteria is in allowing the public interest to be judged without making interpersonal utility calculations

a. True b. False


a

Economics

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In the figure above, when production is 3 units with a price of $3, the consumer surplus equals

A) a + b. B) a + b + f + g. C) a + b + f + g + h + l. D) a + b + f + g + h + l + i + m.

Economics

If an economist says that fiscal policy "crowds out," she believes that

A. government spending has caused workers to lose their jobs. B. government subsidies have caused a monopoly in an industry. C. government borrowing has pushed private borrowers out of the financial market. D. tax rates are so high that workers are encouraged to leave the labor market.

Economics

Given a consumption function of C = $25 + 0.75YD, the average propensity to consume equals 1 when disposable income equals

A. $75. B. $25. C. $100. D. -$300.

Economics

If total costs are $50,000 when 1000 units are produced, and total costs are $50,100 when 1001 units are produced, we can conclude that

A. average variable costs are $100. B. marginal costs are $100. C. average total costs are $100. D. average fixed costs are $100.

Economics