Part of the efficiency cost resulting from a switch from perfect competition to monopoly is the loss of consumer surplus caused by the decrease in quantity produced.
Answer the following statement true (T) or false (F)
True
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The Gini coefficient in most countries is greater than one
Indicate whether the statement is true or false
A clear conclusion from offshoring debates and analyses is that:
a. It has significant potential to redistribute income from labor to businesses. b. Its effect is to increase unemployment in the nation from which offshoring takes. c. Its effect is always to decrease GDP in the nation from which offshoring takes. d. All of the above are clear conclusions from these debates and analyses.
If the spending multiplier is 8, then the marginal propensity to consume must be 7/8
a. True b. False Indicate whether the statement is true or false
Figure 12.1 shows a successful price-fixing arrangement (cartel) between two identical firms. When the two firms act like one and charge the same price, each firm will earn an economic profit of ________.
A. $1,250 B. $1,000 C. $500 D. $0