Suppose the United States chose to legalize the production and use of marijuana, but also decided to put a tax on the good. After doing so, suppose that the price that consumers paid fell, and the amount that growers got to keep also fell. This would
A. be shockingly counter-intuitive, because there would be no supply-and-demand model that could explain it.
B. indicate that the demand-side effect was greater than the supply-side effect.
C. suggest that the supply curve is vertical.
D. indicate that the demand-side effect was smaller than the supply-side effect.
Answer: D
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The above figure shows the Lorenz curve for wealth for the nation of Rusha. The poorest forty percent of the population own what percent of wealth?
A) 0 percent B) 10 percent C) 20 percent D) 40 percent
Agraria sends wheat to Cyberia in exchange for computers and technology goods. This is an example of
A. unidirectional trade. B. joint venture. C. barter. D. monetary exchange.
Which of the following is an intermediate product?
A. A road B. Steel C. Bread D. A TV set
The goals of equity and ________________ are sometimes in conflict.
A. fairness B. efficiency C. capital