Which of the following statements is true?
a. Sales, excise, and flat-rate taxes violate the ability-to-pay principle of taxation fairness because each results in a greater burden on the poor than the rich.
b. Government failure may occur if voters are rationally ignorant.
c. Government failure may occur because of special-interest group political pressure.
d. All of these.
d
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Monopolists engage in game theory pricing behavior
Indicate whether the statement is true or false
Based on the graphic for perfect competition versus monopoly, the change between the producer surplus of perfect competition and the producer surplus of a monopoly is ______.
a. a – b
b. a + b
c. b
d. –c
Which of the following statements is INCORRECT regarding the properties of information products?
A) Providing an information product entails incurring relatively high fixed costs. B) The average total cost curve for a firm that sells an information product slopes upward. C) The firm experiences economies of operation in the short run. D) In the long run, the producer earns sufficient revenue to cover the opportunity cost of capital.
SAT scores are ________ than they were in the 1960s, ________ they were in 1980.
A. lower; and much lower than B. higher; and much higher than C. lower; but about the same as D. lower; but higher than