An effective price ceiling causes a loss of
A) producer surplus for certain and possibly consumer surplus as well.
B) consumer surplus only.
C) producer surplus only.
D) consumer surplus for certain and possibly producer surplus as well.
E) neither producer nor consumer surplus.
A
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An additive social welfare function would
A. add the incomes of the lowest ten percent of income earners. B. subtract out the utility functions of all people who are unemployed. C. sum all individual utilities. D. maximize the utility of the person with the minimum utility.
Cited in the text, one obvious example of the effect on power politics that comes from reducing poverty is the increasing influence of
a. Brazil. b. India. c. China. d. Russia.
GoodPrice Increase Last YearAmusement park tickets5.0%Bowling balls4.2%Camouflage neckties3.1% Refer to Table 8.1, which gives hypothetical data on price changes for three goods. If the overall rate of inflation in the economy was 3.5%, what happened to the real price of amusement park tickets?
A. The real price of amusement park tickets rose by 8.5%. B. The real price of amusement park tickets fell by 1.5%. C. The real price of amusement park tickets rose by 5.0% D. The real price of amusement park tickets rose by 1.5%.
In Spain, people are considered organ donors unless the explicitly indicate they do not want to be. In the United States, people are only considered organ donors if they explicitly indicate they wish to be. Behavioral economics would suggest that
A) everything else equal, the opt-in system of Spain would generate more organ donors as a percentage of the adult population. B) everything else equal, the opt-in system of the United States would generate more organ donors as a percentage of the adult population. C) everything else equal, the opt-out system of Spain would generate more organ donors as a percentage of the adult population. D) everything else equal, the opt-out system of the United States would generate more organ donors as a percentage of the adult population.