A socially optimal price:
A) maximizes consumer surplus and minimizes producer surplus.
B) maximizes producer surplus and minimizes consumer surplus.
C) maximizes total surplus.
D) maximizes deadweight loss.
C
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Unions can increase their wage rates by
a. all of the following b. decreasing the supply of labor c. using the threat of a strike d. increasing the proportion of union workers in the industry e. increasing the demand for the product they produce and, therefore, the demand for their labor services
Economists believe that most people's actions are rational and purposeful, not random and chaotic
a. True b. False Indicate whether the statement is true or false
The idea that poor people consume a higher percentage of their income than the rich is a logical conclusion drawn from
a. Keynes's absolute income hypothesis b. Duesenberry's relative income hypothesis c. Friedman's permanent income hypothesis d. the life-cycle hypothesis of consumption e. the consumption function
The introduction of satellite television systems would cause the demand curve for cable television to be
A) more elastic. B) less elastic. C) perfectly inelastic. D) unchanged.