Figure 17-2
Given the situation in graph (1) in Figure 17-2, what action could be expected from the economy's self-correcting mechanism?
a.
an increase in aggregate demand
b.
a decrease in aggregate demand
c.
an increase in aggregate supply
d.
a decrease in aggregate supply
c
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The sum of all the net benefits received by the parties to a transaction is called
A) consumer surplus. B) producer surplus. C) cooperative surplus. D) deadweight loss.
If soft drink brands are close substitutes for each other, this implies that the price elasticity for individual brands would be low.
Answer the following statement true (T) or false (F)
A consumer maximizes utility when the marginal utilities of all goods
a. having positive money prices that are equal to zero b. are equal c. are maximized d. are equal to the opportunity costs for all goods that are considered necessities e. are exactly proportional to their market prices
Which is of the following is an example of a progressive tax?
a. An excise tax on a luxury good b. An income tax whose rate increases as income increases c. Medicare tax, which is a percentage of income d. A payroll tax that does not increase beyond a certain level of income