One problem with the concept of utilitarianism is that
A) there is a cost to transferring income from the rich to the poor.
B) there are increasing marginal costs.
C) there are decreasing marginal benefits.
D) markets cannot adjust to income redistribution.
A
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A monopoly can earn positive profits because it
a. can sell unlimited quantities at any price it chooses. b. takes the market price as given and can sell unlimited quantities. c. can set the price it charges for its output but faces a horizontal demand curve. d. can maintain a price such that total revenues will exceed total costs.
If people care about relative consumption rather than absolute consumption, then:
A. there is little need for government intervention in markets. B. their choices will lead to an efficient allocation of resources. C. their behavior will be consistent with traditional economic models. D. individuals' decisions need not lead to socially optimal outcomes.
The median voter votes yes for a project if
A) the value of the project for him is larger than the tax he needs to pay. B) the value of the project for him is smaller than the tax he needs to pay. C) the total benefits are positive. D) the total cost is zero.
Refer to the Laffer Curve above. A cut in the tax rate from T5 to T4 would:
A. Decrease tax revenues and support the views of supply-side economists
B. Increase tax revenues and support the views of supply-side economists
C. Increase tax revenues and support the views of mainstream economists
D. Decrease tax revenues and support the views of mainstream economists