Consumers may benefit more than sellers from a subsidy to sellers if:
A. they deserve the subsidy more.
B. the demand curve is relatively more elastic than the supply curve.
C. the demand curve is relatively less elastic than the supply curve.
D. Consumers can never benefit more than sellers from a subsidy to sellers.
B. the demand curve is relatively more elastic than the supply curve.
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When long-run average cost remains constant as output increases there are constant
A) marginal returns. B) returns to scale. C) economies of scale. D) diseconomies of scale.
An important reason why Ricardian equivalence may fail is if
A) borrowing and lending are done through intermediaries. B) government debt incurred today may not be paid off until after some current consumers are deceased. C) state and local governments also engage in debt finance. D) some consumers are borrowers, while other consumers are lenders.
Subsidies are payments made by the government of a country to:
a. foreign firms to encourage imports from the country in question. b. foreign firms to boost their exports. c. domestic firms to encourage exports. d. domestic firms to encourage imports. e. domestic consumers to encourage consumption of imported goods.
In terms of price indexes, what is a COLA?
a. A measure of the quality of living b. A consumer price adjustment c. An increase in wages designed to match consumer price increases d. An estimate of gross domestic product e. A measure of producer surplus