The difference in total surplus between the socially efficient level of production and the monopolist's level of production is
a. offset by regulatory revenues.
b. called a deadweight loss.
c. equal to the monopolist's profit.
d. Both b and c are correct.
b
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A consumer
a. is equally satisfied with any indifference curve. b. prefers indifference curves with positive slopes. c. prefers higher indifference curves to lower indifference curves. d. prefers indifference curves that are straight lines to indifference curves that are right angles.
The estimated demand for a good is
= 4800 - 16P - 0.65M - 1.5PRwhere Q is the quantity demanded of the good, P is the price of the good, M is income, and PR is the price of related good R. If income decreases by $2,000, all else constant, quantity demanded will ________ by ________ units.
A. increase; 1.30 units B. increase; 1,300 units C. decrease; 65 units D. decrease; 6.5 units
Sonia has a BA in art history, and is currently working full-time as a waitress. The Bureau of Labor Statistics would count Sonia as:
A. underemployed. B. employed. C. unemployed. D. a discouraged worker.
Assume that the government one day decides to tax greens fees at all state golf courses. To the government's dismay, not only was the amount of tax collected small, but there was a 90 percent decline in golfing. What type of tax analysis did the
government apparently rely upon when it imposed this tax? A) static tax analysis B) dynamic tax analysis C) transaction cost analysis D) ad hoc tax analysis