Economist A. P. Lerner's idea that equality of income maximizes society's welfare is based on the assumption that
a. individuals have dissimilar utilities, but private property ownership distorts individual utilities so that no income distribution exists that reflects true utilities
b. individuals are egalitarian
c. individuals have identical utility functions
d. individuals have identical skills
e. individuals would voluntarily choose income equality
C
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Marginal utility is _____
a. always greater than total utility b. utility that is not as good as normal utility c. the extra utility derived from consuming one additional unit of a good or service d. always positive e. not related to total utility
The accompanying table shows a pizzeria's fixed cost and variable cost at different levels of output. Pizzas sell for $20 each.Number of Pizzas Per DayFixed Cost ($/Day)Variable Cost ($/Day)050002550015050500250755004501005008501255001,650 When the pizzeria makes 100 pizzas a day, its fixed cost is ________ and its total cost is ________.
A. $350; $850 B. $850; $1,650 C. $500; $850 D. $500; $1,350
Based on the figure below. Starting from long-run equilibrium at point C, a tax increase that decreases aggregate demand from AD1 to AD will lead to a short-run equilibrium at point ________ and eventually to a long-run equilibrium at point ________, if left to self-correcting tendencies.
A. D; C B. D; B C. A; B D. B; C
Figure 16.4The pollution tax in Figure 16.4:
A. increases equilibrium output. B. internalizes the pollution externality. C. increases supply. D. All of these