Who benefits from a subsidy to buyers?
A. Only sellers benefit from any kind of subsidy.
B. The benefit is shared depending on the elasticity of the supply and demand curves.
C. Only consumers benefit, since it is their subsidy.
D. None of these statements is true.
Answer: B
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Refer to Scenario 17.2. If the threshold educational level y* is set at 45,
A) only individuals in Group K will attain it. B) only individuals in Group M will attain it. C) individuals in both groups will attain it. D) no individuals will attain it. E) some fraction of individuals in each group will attain it.
If there is persistent inflation
A) long-run aggregate supply is growing at a faster rate than aggregate demand. B) long-run aggregate supply is growing at a slower rate than aggregate demand. C) there is an excess of total planned expenditures. D) long-run aggregate supply is constant.
Is it possible for GDP to increase but for the standard of living to decrease? Explain.
What will be an ideal response?
When total utility is falling
A) marginal utility is at a maximum. B) marginal utility is at zero. C) marginal utility is negative. D) marginal utility has decreased, but is now increasing.